Today, the topic of the Country's Foreign Reserves did come up in the hearing. But, the CCJ judges didn't appear too impressed by the argument that the Central Bank Governor is worried that to pay out 70 million dollars more in US currency will strain Belize's foreign obligations to the breaking point.
You'll remember that letter that Glenn Ysaguirre wrote to Financial Secretary Joseph Waigh back in July saying quote, "…It is necessary to advise all concerned that it would be destructive for the economy of Belize if the Central Bank were to even attempt to facilitate any such requests to facilitate for an additional amount of foreign currency, given the currently level of official foreign reserves and other external demands facing the bank…the Central Bank…must…exercise careful management of the international reserves by balancing the foreign exchange needs of the Government against those of the domestic banking system, and the wider private sector. " End Quote.
We asked both sides about that today, and here's what they had to say:
Denys Barrow, Attorney for GOB
"The governor has to make a decision as to what US dollar amounts it will allow to be paid in priority to what. So we need to pay for instance, to import oil. We need to pay to import food stuff. We need to pay to import essential items. We need to pay the super bond. There is obviously in all instances a decision which needs to be made by the Central Bank."
Eamon Courtenay, SC - Attorney - Dunkeld/Ashchroft Alliance
"First of all we dispute that. That's the first point. The letter from the Governor of Central Bank set out certain payments that he says the Central Bank has decided that they are going to pay in priority to my clients' amount that they are to get. I think you would have heard the presiding judge strongly intimate, what does that have to do with anything? When he referred to the letter from the governor of central bank. He says, it sounds to him like a tenant saying to his landlord I owe you the months' rent, but I can't pay. What is the point 
of that? In other words, the government cannot bind itself to an agreement to pay US dollars and when the time comes it simply say we are going to pay other debts. This is a charge on the consolidated revenue fund. It has priority and I am confident that the court is going to order the government to pay the amount in US dollars."
Denys Barrow, Attorney for GOB
"If it was a case that there was an abundance of US dollars in the system, it wouldn't matter to the government whether to pay in Belize Dollars or US dollars. There is no benefit to the government to not pay in US dollars. The only reason for not paying in US dollars, would be because of the crunch it would cause upon the domestic banking system and the ability of people like each of us to get US dollars."
Courtenay told us that if indeed the country's Foreign Reserves cannot handle such a payment, it is the responsibility of the Government to come to the court and explain this, along with a plan for installment payments. He said that his clients would also carefully consider these matters should the Government do so in the correct forum.
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