A Roundup of Interesting News in the Jewel

Belize.com News Letter for June 15 2005

Bush picks former college roommate as ambassador to Belize. Rob Dieter, former roommate of George W. bush at Yale, has been selected to be the new US ambassador to Belize. Dieter is a law professor at the University of Colorado. Dieter will replace Russel Freeman who was a fundraiser for Bush and the Republican Party in North Dakota.

International Rating Agencies Glum on Belize. This month has seen a clutch of rating agencies lower Belize’s credit ratings. Moody’s Investor Services has downgraded Belize to B3 from B1 and this follows a similar step taken earlier this month by Standard and Poor. The downgrades are seen locally as a vote of no confidence on the austerity measures introduced by the Belize Government in early June.

GOB has announced steps to reduce its wage bill by laying off a few contract and low level public officers, tweak the sales tax collection system, and cut infrastructure development projects. These measures mirror to some degree, recommendations made by the International Monetary Fund earlier this year. Belize has so far resisted entering into a standby arrangement with the IMF which would allow it to access funds at concessionary rates to bail it out of its precarious financial position. A standby arrangement however, would compel the government to adhere to a strict and closely monitored austerity program.

Amandala threatens to work for a change of government. The largest and most influential newspaper in Belize has stated that it has no choice but to work to bring about a change of government. The Amandala started off as a black-power newspaper in the sixties but has now become a large and highly respected organization that includes newspaper, radio and television interests. The media empire was until lately, closely allied to the ruling PUP. Two former Peoples United Party ministers removed from the Cabinet in December 2004 are connected to the Amandala. Cordel Hyde former Minister of Education is a son of the publisher, and Mark Espat, former Minister of Tourism, is a son-in-law of the publisher. Both Hyde and Espat remain as PUP parliamentarians but do not lose any opportunity to lambaste their party.

In a related media development, there are strong rumors that the PUP is about to purchase FM 2000 a local radio station. The PUP has refused to confirm or deny these reports. The PUP, unlike the opposition United Democratic Party, does not own its own radio station.

Looking for oil in Belize. The search for oil has intensified. Belize Natural Energy Limited is drilling a well in the Spanish Lookout area of Western Belize. The company has a license to explore 595,000 acres of land. More details here: http://www.belize.com/articles/oil-exploration-in-belize.html

The House of Representatives meets in Belmopan on Friday and the meeting will find government scrambling to increase its revenue collections. There are no new taxes but there is a tax increase on the table and 7NEWS is reliably informed that it will be directed at Bowen and Bowen Bottling as government increases the excise tax. The increase, according to Channel 7 TV, will be modest, however, and nowhere near the $17 per gallon that the unions have recommended. In the last budget excise was increased from $1.80 to $3.60 which resulted in an increase in the retail cost of beer and soft drinks.
At Friday's sitting, government will also look at closing loopholes in the assessment of stamp duty. An increase in rate for land tax will also be passed.

The Prime Minister may also choose to use the platform in the National Assembly to announce a deal that it is believed will be closed this week, the selling of 37% of BTL back to Michael Ashcroft. Government will argue that it tried to work out a deal with the Communication Workers Union, but could not, and has been forced to turn to Ashcroft to meet its critical foreign exchange shortfall. Ashcroft's deal offer the union financing for 20% of the 37% will still stand, according to the TV report.

Tikal Jets Increase Services. The up and coming airline increased services between Belize City and Flores (Tikal) to four times a week. Additional service is available to Guatemala City. And flights to Cuba have now been launched.

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