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Belize leader vows survival, warns of debt crisis  by Frank Jack Daniel
Belize's prime minister has vowed to survive a wave of anti-government strikes and riots but warned that the tiny Central American nation's debt crisis poses a serious threat to its economic future. Reuters  April 27/2005

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Belmopan, Belize: Belize's prime minister has vowed survive wave anti-government strikes riots but warned tiny Central American nation's debt crisis poses serious threat its economic future.

A popular beach scuba diving center, Belize has been thrown into turmoil over last week riots, strikes main telephone company opposition calls Prime Minister Said Musa step down due unpopular tax increases corruption scandals.

Musa defiantly blamed opposition leaders worst political crisis since independence Britain 1981 but said he will survive real threat debt.

"The political crisis will easier weather than economic but I am convinced will work way through it," he told Reuters an interview late on Tuesday.

"I am convinced if tomorrow called an election we'd win again," said 61-year-old Musa, who elected second five-year term 2003.

Musa, Palestinian descent, said he had intention resigning, although he might reconsider position if were serious violence.

"If situation became so disordered life limb were stake, I love my country I love my people, I would certainly have consider option," he said, adding he thought further violence unlikely.

Belize's residents are famously laid-back Belize City, biggest town country just 270,000 people, calm on Wednesday morning after unrest past week.

Telephone service sporadic teachers' strike went into second day but more schools were open more teachers working than on Monday.

Corruption debt

At heart crisis lies nearly $1 billion public debt persistent allegations government corruption.

Belize's fiscal defic amounted huge 8 percent gross domestic product last year Standard & Poor's rating agency said month country's finances were "dire" shape.

"We have reduce debt have get fiscal defic under control bring below three percent," said Musa, who first elected 1998.

Heavy government spending tourism boom have fueled steady economic growth recent years but fiscal defic now poses serious threat stability government has been forced cut back on projects impose tax increases.

Musa said those hikes spending cuts would close financing gap reduce fiscal defic over next 18 months. "We are not going depend on people forgiving debt."

Much criticism Musa's government stems allegations money social security fund, which pays pensions, used back short lived telecommunications company owned an ex-minister.

Musa accepted investigations would likely uncover irregularities but he did not believe any criminal offense he rejected suggestions corruption scandal enough warrant new elections.

"If every time any government faces allegations corruption were resign call elections, I think just about every government would calling elections every year," he said.

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