PUP comments on Santender SSB loan proposal

There has been much discussion regarding Guatemalan company Santender’s request to borrow some 12 million dollars from the Belizean Social Security Board. It has caused quite a heated discussion on the talk show circuits and today, the People’s United Party joined its voice of concern saying that  “The primary concern is why the peoples’ money is being used instead of borrowing from the commercial banks. The Santander Group is either strong enough to borrow an additional $12 million from commercial banks or it is not. If it is not, then the SSB should not be making this loan. The $12m loan approved by the SSB to a subsidiary of the internationally known Santander Group is only a part of a larger Syndicated loan financed by local and international banks. The PUP calls on the SSB to make public whether its proposed loan will be a first-ranking charge on the assets of the Company.”  The PUP also says that the public should be informed whether there is any security sharing agreement between the lenders that would restrict the right of the SSB to foreclose in the event of the default. The PUP release ends by saying that , “On the basis of the limited information presently available, the PUP believes that this proposed loan is too risky and should not be made by SSB. The PUP stands in solidarity with the majority of Belizeans who oppose the loan of $12m to Green Tropics Limited. Whilst the project is beneficial to the Belizean economy, this loan from the SSB is not.

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