Belize PM aims for creditor superbond deal within month

On October 2, Prime Minister Dean Barrow said that Belize hopes to strike a deal with creditors to restructure its $550 million ‘superbond’ within one month.

It should be reminded that the jurisdiction missed a $23.5 million interest payment on the sovereign bond in August and made a partial payment of $11.7 million on Sept. 20 when a 30-day grace period ended.

Creditors agreed in September to grant Belize a second 60-day grace period as a sign of good faith as talks continue.

Barrow said: “We actually hope we can reach a point with the bondholders where we can launch the debt exchange offer by the end of October … not later than very early in November”. He also added that he does not see any difficulty we would have in meeting the deadlines.

After the interest rate on the superbond rose to 8.5% this year from 6%, Belize said it could not afford to service its debt. The government of Belize has laid out 3 proposals for rescheduling its bond payments, shocking analysts with its suggestion that they take a haircut of up to 45% on their investment. It has asked the Inter-American Development Bank for a partial guarantee on its debt and Barrow ruled out any possibility of a bailout from the IMF.

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