The Central Bank of Belize issued a press release correcting a social media claim that proposed amendments to the Moneylenders Act and Regulations would raise the maximum interest rate from 48% to 148% per annum. It stated that the draft reforms instead aim to tighten limits on the total cost of borrowing and improve consumer cost disclosures. Under the current framework, moneylenders may charge up to 48% per annum in interest and up to 16% per month in fees and charges, which can combine to an effective annual cost of up to 240% per annum. The proposed amendments would replace these multiple limits with a single consolidated cap of 144% per annum on total interest, fees, and charges, and would require standardized pre-contract disclosures covering items such as interest, fees, total repayment, penalties, and an annualized percentage rate. The draft also includes enforcement mechanisms and penalties for unlicensed and non-compliant entities. The amendments remain in draft form and are under consultation with licensed moneylenders, and the Central Bank confirmed there has been no official change to permitted charges under current legislation.
Central Bank of Belize 2025-08-26
Central Bank of Belize clarifies draft Moneylenders Act amendments would cap total charges at 144% per annum
The Central Bank of Belize clarified that proposed amendments to the Moneylenders Act aim to consolidate borrowing costs under a single cap of 144% per annum, contrary to social media claims of a 148% interest rate increase. The draft reforms focus on improving consumer cost disclosures and enforcing penalties for non-compliance. Current legislation allows up to 48% interest and 16% monthly fees, totaling an effective annual cost of up to 240%.