Belize - Belize News - - Great Belize Productions - Belize Breaking News
Home » Economy » Can Government Persuade Bondholders for Superbond 3.0?
Dec 5, 2016

Can Government Persuade Bondholders for Superbond 3.0?

Prime Minister Dean Barrow is tonight in New York City where discussions are taking place on the restructuring of what is known as the Belize Superbond 3.0, by all accounts an unprecedented exercise. News Five has obtained a copy of a presentation that G.O.B. will rely on to convince bondholders.  It presents a grim picture of the Belizean economy, even worse than thought.  The document is split in two parts: Recent Economic Developments – Slow Growth and Weak External Accounts—and Analysis of Belize Debt Servicing Capacity – Public Debt Sustainability at Risk.  From the headings, one does not have to be an economic guru to know the economy is in turmoil. In fact in prior weeks, credit ratings have downgraded and there are projections of a national default looming ahead; all that in the background of a recession. In short, G.O.B. is admitting to the bondholders that all the economic assumptions used to put together the Superbond 2.0 are not materializing. Among the reasons cited: Growth rates have fallen far short of projections made in 2012, there is a sharp decline in Belize’s economic conditions, economic growth has come to a halt, the current account deficit has become dangerously large and foreign exchange reserves have declined. The G.O.B. also cites non-performing loans as a concern, a troubled outlook of key production sectors, a withdrawal of global banking links and a prolonged period growth.  Given all these negative economic conditions, G.O.B. says Belize will be unable to meet the terms and conditions of the Superbond 2.0 of 2012. On Tuesday, we will have more on the seventeen-page document.

Be Sociable, Share!

Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

Advertise Here

2 Responses for “Can Government Persuade Bondholders for Superbond 3.0?”

  1. Fed up! says:

    Bond holders should not reschedule unless they can help govern this country to ensure that money isn’t thrown into useless spending for votes, after all they are investors!

  2. carlos says:

    This government put them-self in this situation. From before election they should have used petrocaribe money to reduce this depth. They went squandering the money, knowing that things in the future was going to be hard, So where is ‘ the best is still to come’ ?

    Everybody will be screwed now , especially the fanatics UDP.

Leave a Reply