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Aug 1, 2012

Superbond payment on near horizon; recent report worrisome

From gold to Superbond; a coupon payment of forty-six million dollars is due on the twentieth of August and the eyes of credit agencies are on Belize to see if it will be met. Bloomberg BusinessWeek today described Belize’s notes as the worst performers in emerging markets this month since the dollar bonds fell by two point five percent. That is attributed to the massive deficit in the national budget, and there are concerns that bondholders will suffer losses in the second restructuring of the debt in five years. The August payment will swell the budget deficit from one point one percent to two point five percent of GDP next year. The article quotes AJ Mediratta of Greylock Capital Management, who is leading negotiations for a group of investors who hold about three hundred million dollars in bonds and says, “The country has the money to make this coupon payment. We know it is there.” While, there hasn’t been much word from the government on the progress of the negotiations, Latin America Strategist of Nomura Securities International, Boris Segura, says it will be very difficult to have the debt restructuring wrapped up by August twentieth and if GOB is trying to reach an amicable agreement, it has to be current with the debt. The Superbond is five hundred and forty-four million dollar and accounts for about half of national debt of one point two billion dollars.

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3 Responses for “Superbond payment on near horizon; recent report worrisome”

  1. BMNJ says:

    First, we have oil; now, we have gold. But yet, we’re still struggling to pay off our debts. Something is really wrong!

  2. Storm says:

    What a choice our leaders put us in, become a nation of deadbeats and pariah in the world financial markets, or condemn our children to keep paying for decades on something that gave them no benefit at all.

    Thieves and conmen in public office have enslaved the whole nation and robbed it of a chance at prosperity for the rest of our lives. We did this to ourselves by electing them, and it seems there is no public figure wise and honest enough to begin to solve the problem. All of the proposals now are just to kick the can down the road, hoping the collapse occurs after the next election.

  3. PGuest says:

    just have to mention one quote “Where are those people that made millions while we were in government?’ lol (this is nt a laughing matter)

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