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The Central Bank of Belize has released a statement to correct a “gross misinterpretation” circulating on social media regarding proposed amendments to the Moneylenders Act. The Central Bank confirms that there has been no official change to the rate that moneylenders are permitted to charge under the current legislation. A fraudulent document, titled “Draft Moneylenders Amendment Bill of 2025,” has been circulating, falsely claiming that a proposed bill would increase the maximum interest rate for moneylenders from 48% to a “stunning” 148% per annum. Love News was informed that this document is fake, and the Central Bank’s press release has now officially clarified the situation.
According to the Central Bank’s press release, the proposed amendments are, on the contrary, intended to place stricter limits on the total interest, fees, and charges that moneylenders can impose on borrowers. The current law allows moneylenders to charge up to 48% per annum in interest, in addition to up to 16% per month in fees and charges, which could result in an effective annual cost to borrowers of up to 240%. The proposed amendments would introduce a consolidated cap on total interest, fees, and charges to a single rate of 144% per annum. This consolidated rate is almost half the total allowable limit under the existing law and is designed to enhance transparency and clarity for consumers. The proposed changes also require moneylenders to provide standardized disclosures to borrowers before a loan is accepted, which would include a breakdown of interest, fees, charges, total repayment, and penalties. The amendments also create new mechanisms for enforcement actions and penalties against entities that are either unlicensed or non-compliant. The Central Bank reiterated that the goal of these amendments is to ensure that all moneylenders operate transparently and that consumers are protected from “excessive and predatory lending practices.” The amendments are currently in draft form, and are undergoing a consultation process with licensed moneylenders. The Central Bank strongly encouraged both the media and the public to seek information from official sources to ensure accuracy./////
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