Among other woes, the 67-year-old credit union had issued bad loans to 191 members to the tune of $1.8 million. The Central Bank of Belize has liquidated the credit union; 1,100 shareholders affected.
BELIZE CITY, Mon. Feb. 5, 2018– Last April, the Central Bank of Belize announced that it would be liquidating the Civil Service Credit Union in Belize City, which has been in existence since the early 1950s.
Today, Amandala spoke with the chief liquidator and accountant, Cedric Flowers, who provided an insight into the ongoing process. He said that due to mismanagement, the Central Bank ordered the credit union to close down its operation.
And so for now, the company isn’t functional, but hasn’t been declared bankrupt; instead, it is insolvent because it cannot pay its bills. For now, one part-time employee handles the administrative affairs of the business.
According to Flowers, the credit union had issued bad loans to 191 members to the tune of $1.8 million. He explained that by March 15, those persons and their co-signers would be receiving letters of impending court action if they do not settle their outstanding debts.
Instead of collecting the principal plus the outstanding interests, Flowers explained that he is asking those who owe the credit union to simply pay the principal amount outstanding on their loans.