The Government of Belize may very well “turn the DFC into a full-scale national commercial bank,” Prime Minister  Dean Barrow announced at his “Turning the Corner” Business Forum held at Old Belize on Wednesday, November 23.
The bold change comes in response to one of the concerns raised by private sector representatives, who have identified commercial banks’ high interest rates as a major blockade to Belize’s economic progress.
In addressing the financial concern, the Prime Minister also stated that “the time may also have come to legislate a cap on interest rate spreads.”
The Central Bank had made several attempts to persuade the banks to temper their interest rates; however, with the Central Bank’s limited power in an “ultra-sensitive situation where none of our commercial banks is truly locally owned,” PM Barrow said more competition is most likely the optimal remedy.
The Central Bank, with international assistance, also plans to further safeguard the private sector by establishing a credit bureau and a “national payments system to facilitate electronic single-card fund transfers and business transactions throughout the country.”
The latter would serve to reduce the need for cash and cheques.
The private sector also identified unscrupulous practices of GST and Customs duties evasion. Tax evaders gain an unfair competitive edge over those who follow the rules.
PM Barrow said, in addition to key administrative changes at the GST Department, two proposals are currently being looked at as plausible solutions.
“One is intended to increase the flow of information from individual establishments to the GST office, while the other is intended to encourage the public to become more involved in oversight operations,” he said.
The Prime Minister shared that the near-future installation of the ASYCUDA system, alongside container-scanning operations, would reduce the levels of corruption and evasion of Customs duties.
ASYCUDA is a computerised Customs management system which covers most foreign trade procedures. The system handles manifests and Customs declarations, accounting procedures, transit and suspense procedures.
The PM also addressed the concern of the over-bureaucratized concession regime, which seems to be useful only to large businesses.
“I have raised the development concession issue with BELTRAIDE...It will also be making recommendations for a specific Fiscal Incentives program to suit small and medium enterprises,” PM Barrow declared.
Along with a streamlined and shortened process for SMEs, the program will also be more sector -specific.
PM Barrow also discussed how the public and private sector can boost production and exports from Belize, key factors in increasing profits, income and employment.
“The public sector may have to take more of a lead in identifying, marketing and bringing to fruition the business and investment possibilities that are likely to attract private sector interest,” Barrow explained.
Crime, road infrastructure, and the availability of timely and reliable statistics were also discussed.
PM Barrow said his adminstration has been employing a two-pronged process to address violent crime issues. It involves the upgrading of the police department’s personnel and equipment, as well as the engagment of community stakeholders--including gangs--“in an ongoing lifestyle evaluation and assistance process.”
The adequate provision of education, health services and employment have all been underscored as key remedies for crime, and they all hinge on the growth levels of the private sector.
About road infrastructure, the Prime Minister said several projects are addressing this matter, including the Northern Road Network that is benefitting from E.U. funding connected to the Accompanying Measures for Sugar.
“In our municipalities...major Southside operations are starting just about now in Belize City, Northside drainage works will begin in January or February.”
Barrow explained his objective in calling the forum was to look at how the private and public sector can work together to build a sustainable economy.
He ended his keynote address by stating: “A clarion call needs to go out now... openings must be created. And Government must be ready to put in place the practical and pyschological arrangments not just to buttress but to muscularize the private sector.”
The forum also featured a two-and-half hour discussion segment, during which PM Barrow also stated that the long-awaited Voice over Internet Protocol in Belize is just a matter of time.
“There is no doubt in my mind that Telemedia will, in the fullness of time, be offering VOIP-driven services... The consumer is king; the Belizean citizen is boss; and so I acknowledge freely the inevitability of the coming of VOIP.”
The public sector representatives at the forum included the Financial Secretary, Central Bank Governor, CEO Ministry of Economic Development, Comptroller of Customs, GST Commissioner, Commissioner of Income Tax, and the Executive Director of BELTRAIDE.
Reporter

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