Belize - Belize News - Channel5Belize.com - Great Belize Productions - Belize Breaking News
Home » Economy, Featured » A tale of 3 bond models; which will work for Belize?
Aug 9, 2012

A tale of 3 bond models; which will work for Belize?

The next bond payment for Belize is due on August twentieth. The government had stated that it budgeted for the payment, but it hasn’t announced whether or not it would make the payment. As you are aware the bond team is currently negotiating with bondholders for new terms that would be sustainable. Tonight we take a look at the options that the bond team is seeking to negotiate with bondholders. The nominal cash flow of the super bond is two point six billion dollars. In scenario A: the present total value is two point one-eight billion, which represents a discount of four hundred and seventeen million dollars on the original value. Both the total interest and the principal are one point zero-nine billion dollars. In scenario B:  the present total value of the bond is one point one billion, a discount of one point four-eight billion on the original value. In this case, the interest would be five hundred and sixteen million dollars and the total principal would be six hundred million. The total cost of Scenario B is one point two billion. Finally, in scenario C:  the present total value is one point one-two billion, which represents a discount of one point four-eight billion on the original value. The interest is five hundred and twenty-five million dollars and again, the total principal would be six hundred million, which puts the total cost at one point one-two billion dollars. Significant discounts are being sought in all three scenarios, but recent reports by Bloomberg and Reuters indicate that the lead negotiators for the bondholders are not willing to accept a discount on the cash value. Click here for a more detailed look at the three scenarios or here  to see a breakdown of superbornd payments.

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

7 Responses for “A tale of 3 bond models; which will work for Belize?”

  1. Louis says:

    “reports by Bloomberg and Reuters indicate that the lead negotiators for the bondholders are not willing to accept a discount on the cash value.”

    Of course creditors are not going to accept any of these scenarios.

    IF BELIZEANS OWNED THE SUPERBOND THEY WOULDN’T ACCEPT IT EITHER AS IT IS HIGHWAY ROBBERY.

    Is this what we have turned into? Into a nation of robbers? highway robbers to be precise?

  2. Ricky Malthus says:

    Belize is in its financial death throes because the minister of finance for the country is presenting to creditors unacceptable payment plans . The creditors want to make a profit for lending their money just like any bank in Belize or they foreclosure as is occurring . Barrow cannot hide or delay payment any longer. What he must do is make the coupon payment due on August 20,2012 and negotiate with IMF for a new loan to payoff these creditors. Yes, Barrow will have to eat crow and follow the dictates of IMF. These dictates will mean “a lean and mean” Belize for the forseeable future. What surprises me and the intelligent cognoscenti is didn’t the brain thrust from ministry of finance, central bank, economic development, beltraide, and prime minister see this train wreck approaching, and why didn’t they take steps to avoid or mitigate the fallout or consequences. This occurrence is just plain sloppy , unprofessional, and untidy( no pun meant to the Untidy brother Espat).

  3. me says:

    Perhaps thier secret to pay the bond , (the meth) was uncovered, well now they cannot pay.

  4. Louis says:

    Ricky, you are absolutely right.

    The worst part is that now the entire world views Belize as a nation of thieves.

  5. Storm says:

    I agree 100%, with both Louis and Malthus.

    Violent crime, public corruption, deficit government spending, and the Superbond problem are the biggest issues facing Hon. Barrow & Co.

    Here is the question: will GOB take an effective step to deal with ANY one of those problems? Everything else is meaningless.

  6. Belizean says:

    I dont think any of the above have any idea what 2.6 billion, or 1.2 billion means. What does that do to a country? Not even with a couple loads of meth can that be paid!! How dumb. It is not a simple matter to repay this. More rightfully said would be: Musa and Co. that need to find out a way to zero this loan. We have zip to show for it!! Nothing, and you guys are supporting a couple billion dollars worth of nothingness?

  7. Louis says:

    Storm, will GOB take an effective step to deal with ANY one of those problems?

    if Barrow hasn’t solved any major problems in all these years, he’s not going to do it now.

Leave a Reply

CAPTCHA Image
*