Belize government paid part of its debt

After missing the US$23 million payment on the debt issue on August 20 and failure to make any payments on US$544 million bond deal during the monthly grace period that expired on September 19, Belize has paid US$11.7 million – almost half of the owed sum.

This payment has given Belize a 60-day time period, during which major creditors have reportedly agreed to refrain from taking legal remedies against the country, to allow restructuring negotiations to continue.

AJ Mediratta of Greylock Capital Management, co-chair of the committee representing the majority of bondholders, said: “The government’s decision on the coupon payment was taken in consultation with the (bondholder) committee and we consider it a material and good faith step in the right direction.”

The Belize government has given three proposals for rescheduling its bond payments, which were not agreed with by creditors. However, by words of financial adviser to the committee, bondholders are hoping that an agreement that balances the interests of both parties could be reached in the nearest term.

Comments are closed.