Belmopan, Belize 6 December (Belizean.com) Turk and Caicos based British Caribbean Bank Ltd. has issued a press released printed in local Belize newspapers this weekend clarifying its position on a U.S. $22.5 million made to local telco Belize Telemedia Ltd. in July 2007. The telephone company which was expropriated by the Belize government in August 2009 this year is refusing to pay back the loan.

BTL chairman Nestor Vasquez stated to the media this week that the bank is seeking to close
down BTL on the basis that it neglected to pay back its debt to the bank. Vasquez said that BTL's attorney considers the loan taken out
by the previous board of directors to be unlawful and therefore void.

In it's press release British Caribbean Bank says that "In July 2007, BTL entered into a legally valid and binding agreement with the Bank. Under the terms of the loan agreement. BTL warranted that it was fully and legally authorized to enter into and to perform the terms of the loan agreement with the Bank. BTL's use of the loan proceeds benefited all its shareholders and it is ludicrous and clearly legally wrong for the Chairman of BTL to now announce that a loan which BTL in 2007 was in order, is now somehow illegal."

The bank's press release concludes by stating that "The Board of DIrectors of BTL, taking its cue from the government of Belize, is now following what is becoming a worn-out and immediately recognized strategy of the current Government, that being to proclaim as illegal any and all contracts it cannot pay or does not wish to pay."