Earlier on we told you about the effect that paying the big bill for BTL will have on the national debt profile. And while that's one major problem affecting an economy which already showed negative growth in the first quarter of 2016, another is the continuing, and worsening problem with correspondent banking relations. The IMF issued a report yesterday which notes that, quote, "Only two of (Belize's) nine domestic and international banks (representing 27 percent of the banking system's assets at the end of March 2016) have managed to maintain Correspondent Banking Relationships with full banking services" End quote. It also discloses that The Central Bank of Belize has also lost two of its correspondent relationships.
Reports say that CITBANK is one of those banks that has most recently ended its relationship with the Central Bank. It follows Commerzbank, which left last year. The Bank of America retains its correspondent banking relationship with the Central Bank.
The issue of de-risking is expected to dominate the CARICOM Heads of Government meeting next week in Guyana as it did in Belize six months ago.
A World Bank report says 75 per cent of international banks have experienced a reduction in correspondent banking services, and the Caribbean is the most affected.
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