Belize - Belize News - Channel5Belize.com - Great Belize Productions - Belize Breaking News
Home » Featured, Politics » S&P pushed Belize’s Credit Status deeper into junk territory
Feb 6, 2012

S&P pushed Belize’s Credit Status deeper into junk territory

As you know, the date for the general elections was announced last Tuesday by Prime Minister Dean Barrow, almost a year before they are due. What was probably missed by most people in his televised and radio statement had to do with huge debt that Belize owes internationally. Prime Minister Barrow said that his administration would seek “clear instructions” from the electorate to “do something about the Super Bond.” What that “something” is was not spelt out by the PM but it has created great ripples in the financial markets internationally. Standard & Poor’s Ratings Services, for example, has pushed Belize’s credit status a notch deeper into junk territory because it viewed the PM’s comments as signaling less of a political will to service its debts. According to S and P, the announcement comes amid “low economic growth, a weak investment outlook, increased levels of crime, and limited ability to raise government revenue, all of which, from a credit perspective, weaken the government’s payment capacity.” Similarly, Moody’s Investors Service has said that the PM’s comments raised serious concerns about the U.D.P. government’s willingness to service its debts. These rating agencies take the view that the decision of the PM to bring the government’s five hundred and forty-six point eight million dollar bond into the election fray makes GOB’s continued debt servicing less predictable.

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

11 Responses for “S&P pushed Belize’s Credit Status deeper into junk territory”

  1. Another day in paradise says:

    Got to wonder combining two elections is another way of saying ‘we can’t afford two, out of money’.

  2. Be Real says:

    Key word “Super Bond,” which meanw Said Musa and the PUPs hopeless economic management. Plus who cares bout Moody’s or S&P, I don’t trust no Jew led syndicate or some ratingas made by some on in New York, Washington or London.

  3. CEO says:

    You could not care “Be Real” but hey the S&P is real. The rest of the world knows it’s real too!

    We need better leadership. When the better leaders are turning down the party and going elswhere it is time to pay attention. Barrow have nothing to rejoice about because he too is guilty of Gestapo tactics and if he is smart he will not bully those that are around him and not penalize them if they speak out but rather pay attention to the real needs of the country.

    Use this a learning situatrion Mr. Barrow! If you win this time it will be by default poor leadership will place you in the same situation very soon if you continue your ways.

  4. javier solis says:

    I think the mentality of people like CEO has come to an end. He should stop barking at Barrow and watch what his party did to our country. Leave off your cloak of fanatism you bubu. It makes you look simple.

  5. Louisville,Ky says:

    CEO, Mr Barrow might be Gestapolike in his tactics or whatever but, I do not think that is what got the nation in this financial mess that it is in. The future of two generations have been mortgaged and ‘poor things’ have absolutely nothing to show for it. Nothing, nada, neekat, zero!!
    That is what is truely bothersome about this entire scenario.
    You all can get your drawers in bunches all you want over some colors and bury your heads in the sand like the Ostrich however, the reality is one political party robbed the country blind and now some of you are willing to place them right back in the bank ‘mongst’ the loot.
    Maybe it’s only me but, Iam just saying……

  6. Think-about-it says:

    Be Real, the superbond is not the problem. The problem is that the economy has not grown enough in the interim. The superbond is a fact of life, and crying about it for 4 years obviously did not make it go away! The superbond is a culmination of almost 20 years of borrowing. You can pass judgment on individual projects or borrowings or use of money by either party, that is a political question and it was answered in 2008 with the UDP’s resounding victory. The superbond itself, however, was sound financial management that gave Belize some breathing room. That breathing room was squandered spending the last 4 years fighting Ashcroft, Fortis, Zenaida, Cardona, Oceana, the World Bank, the IMF, and God knows who else. Just fighting fighting and more fighting instead of trying to build a sustainable economy. If the UDP had built a sustainable economy that continue to service our debts, THEN they could rightly blame the PUP and tout their accomplishments. As of now, though, they have only a downgrade to show for their efforts (or lack thereof). If you don’t believe, ask yourself why Belize wasn’t downgraded BACK IN 2007 when the bond was negotiated, rather than now??????

  7. alexander says:

    true! all dean borrow is doing is blaming nad blaming the PUP, come on people he won elections already beacuse he promised the people of belize he will do better for belize, he blamed PUP as much as he cud for being corrupt and guess what he is doing??????? can u gues??? ……………. he is doing exactly the same thing and he is trying to cover his corruption by blaming the PUP and reminding people of what PUP did years ago, that is called distracting people so that they don’t see his wrongs… be real people we no have to be PUP, UDP, nor VIP or whatever P to see what a corrupt dictator dean borrow is !!!!!!!!!!!!!!!!!!!!!!!!!!! LETS OPEN OUR EYES BELIZEANS!!!!!!

  8. Initiate! says:

    Two things are for sure: The PUP could/should be a better opposition than what they are, and PUP still apparently needs to learn to be a good opposition, to truly serve this country. Anyone of us left on our own will do poorly.

  9. The Accountant... says:

    To be extra it is a 22 years loan of 1.1 billion Belize dollars, with interest about rates of $15.3 million annually. Government ongoing revenue sources, which loans could then not be repaid because of the poor quality of the underlying investments, Belize is required to pay a total of BZ$2,941,000,000 (BZ$1,841,000,000 interest plus BZ$1,100,000,000 principal) to outside investors who purchased the Super Bonds over the 22 year period of the Super Bond. Mr. Minister please be more clear to your people about this super bond situation and my fellow Belizean lets educated ourselves with understanding our country finance and outstanding debits, and do not encourage the country to get in deeper debits.

  10. subKonshus says:

    The UDP knew well before they got into office that the super bond existed. In my opinion, poor fiscal management is being unable to find creative ways to service your debts. If it was not the super bond, it would have been something else, just by another name. But we would still have external debts to service. Its obvious that the UDP have no solutions to meeting their fiscal obligations both internally or externally. Consider the nationalization of BEL and BTL. No no compensation has been paid out, but yet the Government are using proceeds from shares of BTL for campaigning. It seems to be a trend of the UDP to find exuses not to pay their Debts.

  11. R.I.O.T says:

    Brothers and sisters!!!!!!!!!!the reality is as was mention there is a super bond !!!! that’s not a myth its real……………………so then this is where we are today and what we need is a SOLUTION…….DEAN BaRROW and his government was elected to SOLVE our problem………..NOT to REMIND US of it….or find excuses offer excuses as to why the solutions to our country not meeting its debt obligation………..we need not be reminded how the debt reach where it is….WE KNOW Mr. Prime Minister that’s why we elected you to solve it……but from the onset you prove to not be capable when as was shared you chose to tackle…detention reform, constitutional reform, Ashcroft, Fortis, Zenaida, Cardona, Oceana, the World Bank, the IMF etc. for crying out loud we know that you are not and economist but surround yourself with people of light mind man. your law firm is not the house of representative PLEASE we elected you to FOCUS on growing our economy and making life better for all!!!!!!!!!! if NOT GO HOME

Leave a Reply

CAPTCHA Image
*