Central Bank Clarifies Proposed Amendments to Moneylenders Act

The Central Bank of Belize has issued a statement to clarify misinformation circulating on social media regarding proposed amendments to the Moneylenders Act and Regulations.

According to the Central Bank, a recent post by a media house incorrectly claimed that the amendments would raise the maximum interest charged by moneylenders from 48% to 148% per annum. The Bank dismissed the claim as a “gross misinterpretation of the facts,” stressing that the intent of the reforms is to strengthen consumer protection, not increase lending costs.

Currently, the law allows moneylenders to impose up to 48% per annum in interest, in addition to fees and charges of up to 16% per month—or 192% per annum—which could push the total effective annual cost of borrowing to as high as 240%.

The Central Bank explained that the proposed amendments would consolidate these multiple limits into a single cap of 144% per annum on total interest, fees, and charges—effectively reducing the maximum allowable cost by nearly half.

“These changes are designed to enhance transparency and ensure borrowers fully understand the costs associated with loans,” the Central Bank said. Under the new framework, moneylenders would be required to provide standardized disclosures outlining interest, fees, penalties, repayment amounts, and the annualized percentage rate before a loan is accepted.

The amendments also strengthen enforcement mechanisms against unlicensed or non-compliant entities, with penalties to deter predatory lending practices.

The Central Bank emphasized that the amendments remain in draft form and are undergoing consultation with licensed moneylenders. Importantly, it reiterated that no official changes have yet been made to the rates currently permitted under existing legislation.

Reaffirming its commitment, the Bank stated: “Our objective is to ensure fair, transparent, and responsible lending in Belize, while safeguarding consumers from excessive and exploitative lending practices.”