Social Security moves ahead with loan to Belize Premium Spirits and Liquors Limited

By Aaron Humes: The assessment of the Social Security Board (SSB) on its proposed $9 million loan investment for a distillery in the North is drawing concerns as to risk and support for a social vice that has caused its share of problems.

But the leadership of the statutory board spoke to reporters on Tuesday to say that it has done its homework and that the investment is wise and proper.

According to Chief Executive Officer Deborah Ruiz the first proposal by the company, owned by Waldir Cuello and Irlanda Cuello, was not considered because the applicant had to make adjustments to the initial amount being sought. The loan runs for 12 years at 7.35 percent interest, with a calculated return of more than $5 million for the Board, but that’s not the only money being put into the project: “We have acres of land that the company has put up. We have put up different personal guarantees. In addition, he is putting in his own money, because as I mentioned, he had made an initial request for a larger sum. So that variance he has to put up, and so we’re only putting this here in terms of the distillery and work equipment, and of course, working capital to get started in for the distillery.”

Leo Vasquez, General Manager, Finance & Investment Services, added that the money will be distributed in tranches according to the timeline for construction.

In response to the insistence that workers’ money should not be unwisely invested, the scheme pays out pensions to retired persons and benefits to sick, injured, pregnant, and invalid persons and the surviving family of deceased contributors, and that money is rolled over from generation to generation. Because of the small population, SSB finds it prudent to find worthwhile investments that will keep the fund going and avoid having to return for increases in contributions as they most recently did between 2019 and 2022.

According to CEO Ruiz, “We have over $130 million that we need to put to work, and I mean, put to work, not sitting at the bank earning

. That will put us nowhere and put us in jeopardy in terms of meeting our obligations for the long term, right? Social Security is talking long term down the road, 10, 15 years from now – we need to have that money working now so that when more persons are retiring we can afford to pay the pensions.”

When complete, the business will open up more than 100 jobs although it will be exporting premium rums and spirits outside of Belize – not much competition with market leaders Travellers Liquors, Cuellos’ Distillery, and Old Masters among others. Production is expected to start in another two years.

But Opposition Leader Moses “Shyne” Barrow says the Board may be “picking and choosing” who to give funds to for investments as he claims to know of “hundreds” of ideas having been turned down, and even suggested that the urgency to invest in this as opposed to housing and health care may be rooted in forthcoming elections.

 

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