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Jul 4, 2012

Superbond deadline of $46 Million payment on horizon

Dean Barrow

No one will be charged with attempted murder for the largest bond that weighs heavily on the government. The Superbond contains two Bear Stearns bonds, a US one hundred and twenty-five million dollar Bond and a US one hundred million dollar Bond; one from the R.B.T.T. Merchant Bank Limited for US seventy-six million dollars and another from the Royal Merchant Bank and Finance Company for US twenty-five million dollars, respectively; three Bonds from Citicorp Merchant Bank Ltd. totaling US twenty-one point five million dollars; Six Promissory Notes to The International Bank of Miami for the aggregate sum of US fifty-two point five million dollars; two other Bear Stearns-designed Insured Loans amounting to a net amount of US ninety-six million dollars; and two short term Promissory Notes issued in favor of the Bolivarian Republic of Venezuela for US fifty million dollars. It’s over a billion Belize dollars that has been restructured once and needs to be restructured again.  This year the annual coupon jumps to eight point five percent from six percent and another forty-six million dollars is due on August twentieth. If discussions with bondholders, the IMF and the IDB fail, will the government be able to handle servicing the August payment? Earlier today, the P.M. said we are faced with a dilemma.

 

Dean Barrow

“I really can’t say. We obviously are faced with a dilemma. If we didn’t put it in the budget; if there was not a line for it, then it means we would have been signaling that we have no intention of paying. You know that the engagement of the bondholders, we conceal of it as being as far as possible amicable or until it reaches the point where it isn’t. And so I think that would have sent completely the wrong signal. But we did have a footnote and I did make clear that we don’t expect to pay this because we are confident that relief there must be. As I suggested in the description that I’m sure you would not have missed and no doubt would not have approved of; this is an existential matter for us isn’t it. So there it is. We had to budget for it, but we have the explanatory note. I fully expect that by the time the payment date rolls around we would have made great progress as a consequence of the interaction with the bondholders and we would see our way at that juncture. I really don’t think I can go beyond that now.”

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6 Responses for “Superbond deadline of $46 Million payment on horizon”

  1. Mike says:

    Mr. PM, stop making up excuses for not growing the economy. Superbond holders are not responsible for your mismanagement of the economy.

    There is no dilemma. The Superbond coupon must be paid. We need to prove to investors that we are a serious country.

    Don’t destroy our good reputation with a senseless default, Mr. PM. We are as good as our word.

    Belize pays her debts. Period.

  2. Mike says:

    Belize has over $500 million in international reserves, more than enough to pay the $46 million coupon in August.

    Stop making up excuses, Mr. PM. I want to see Belize’s credit rating be at least BBB, or preferably A.

    And then we will have 6-8% real economic growth instead your pathetic 2% growth.

    Belizeans are not naive. We know that all this talk about the Super Bond is to distract attention from the economy. To somehow attempt to justify your poor management of the economy on Super Bondholders, who have nothing do to with this.

  3. Rod says:

    Since barrow and Obama are kissing cousins why doesn’t he get on his knees and beg for the us to forgive this depth after all the us gov. Policies have caused hundreds of deaths in Belize if they can give Pakistan billions of dollars why not forgive the belizean depth instead of a few ballons that this ambassador gives Belize it’s because all barrow can do is talk but has no substance, maybe we should consider making drugs legal like Guatemala perhaps this will get the attention of the us gov.and we can pay them off at least the murders will stop if every one in the country is able to sell their drugs legally.

  4. Ricky Malthus says:

    I don’t understand the GOB and Barrow not being able to handle/manage this little debt of US $550 million. The solution is right in front of them. If we, the people have to tell how to do it directly, then we don’t need you. Barrow and Slusher with all that caribbean smart and the retinue cumulative smarts, can’t you see the solution right in front of you , staring at you? Time for everyone to retire from government service and stop fleecing the golden goose or is it goosing the golden goose?

  5. Storm says:

    Mike is right.

    Unless GOB is full of total fools, they have known this was coming — and will keep on coming, and coming, and coming until it is paid off.

    It is reckless to plan on restructuring, when it has not been achieved. The only thing to PLAN on is that the payment is a month away. If you restructure before then, that will be an unexpected gift.

    No excuses, Honourable PM. You are mishandling our money, our credit, and our future.

  6. Fiscal Disciplinarian says:

    how come the budjet for the Belize Embassy in New York has balooned, Ambassador Lois is very expensive after reaping over 5 million in legal fees we must bankroll her high lifestyle in New York. that’s fiscal discipline UDP Animal Farm Style. some pigs will sleep in beds with sheets.

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