The Social Security Board of Belize is advancing two significant financial maneuvers totaling $16 million, aiming to bolster fund sustainability through strategic diversification. The first investment involves a $6.2 million allocation toward Belize Electricity Limited (BEL) debentures, acquired at a discounted rate of $1 million. This fixed-income instrument promises returns exceeding $3 million in interest over a decade, despite BEL reporting substantial losses nearing $10 million in 2024.
Public Relations Manager Vanessa Vellos defended the decision, emphasizing the fundamental security of debentures compared to equity shares. “Debentures mandate repayment regardless of corporate performance,” Vellos stated, highlighting the board’s expectation of recovering the full face value of $7.2 million despite the discounted purchase. She further justified the move by citing Belize’s expanding economy and growing electricity demand, noting BEL’s historical profitability and monopolistic market position.
Concurrently, SSB is proceeding with a $10 million term deposit placement at Heritage Bank, structured as a two-year investment with a fixed annual interest rate of 2.7%. This liquid asset is projected to generate $550,000 in returns while preserving the principal amount. Vellos characterized this as a diversification strategy following successful previous deposits with Atlantic Bank and National Bank.
Heritage Bank Managing Director Steven Duncan welcomed the injection, clarifying that deposited funds would empower lending programs benefiting the very contributors financing SSB. “These monies enable us to lend to the same people who contribute to Social Security,” Duncan explained, addressing security concerns by emphasizing that bank deposits remain protected unless institutional failure occurs—a risk mitigated through SSB’s multi-bank distribution strategy.