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Belize Moneylending Sector Receives New Guidelines from Central Bank
In a recent move aimed at fostering transparency and curtailing predatory lending, the Central Bank of Belize has clarified its proposed amendments to the Moneylenders Act and Regulations. In an official notice issued on August 28th, the central bank confirmed that the maximum annual interest charged by moneylenders would not increase by 100 percentage points to 148% as previously misconstrued by a local media company.
The central bank called out this misinformation as a “gross misinterpretation of the facts” and insisted that it was not reflective of the actual situation. The bank is focused on reducing overall fees, improving transparency, and cutting predatory lending in the moneylending sector.
Impact of the New Guidelines
The proposed changes by the Central Bank of Belize are expected to bring about a significant transformation in the moneylending sector. By striving to reduce overall fees, the bank aims to make credit more accessible and affordable for Belize residents, thereby promoting financial inclusion and economic growth.
Furthermore, by improving transparency, the bank seeks to ensure that borrowers are well-informed about the costs associated with their loans, enabling them to make better financial decisions. This, in turn, is expected to stimulate responsible borrowing and protect consumers from potentially exploitative lending practices.
Conclusion
The Central Bank of Belize’s move to clarify the proposed amendments to the Moneylenders Act and Regulations showcases its commitment to safeguarding the interests of borrowers. By striving to reduce overall fees, improve transparency, and cut predatory lending, the bank is setting the stage for a more inclusive and fair moneylending sector in Belize.
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