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Aug 28, 2012

Bondholders want to evaluate more information

Failure, by the Government of Belize, to meet a forty-six million dollar coupon which was due last Monday, as part of the Superbond payment, has been a hot button issue since mid-August.  In the wake of a subsequent downgrade in Belize’s credit ratings, as well as the recent departure of the Debt Review Team for Washington, the issue remains the focus of public discourse.  While that discussion is being held primarily on the home front, a release from the Coordinating Committee of Belize Bondholders, headquartered in New York, confirmed today that additional investors are being accepted into the group.  Likewise, the committee asserted that it currently represents the majority of the existing bondholders. An evaluation of information provided by G.O.B. is also being conducted through Broad Span Capital, the committee’s financial advisor. According to Broad Span’s Managing Director, Mike Gerrard, there are delays on the part of government in providing critical information requested by the committee.  Gerrard says, “The committee submitted a detailed information request to the G.O.B. in early June, portions of which were provided on June twentieth and August eighth.  However, we were told last week that the G.O.B. would provide the balance of critical items in the coming days.”

 

An initial study of government’s fiscal projections is scheduled to be completed shortly, after which the results will be discussed with the Debt Review Team in an effort to establish a reasonable debt sustainability analysis.  There are concerns however, that the recent chain of actions taken by the government, including the release of an information package which lacks key details, as well as the announcement of restructuring scenarios prior to meeting with bondholders, is inconsistent with IMF’s Good Faith Policy.  AJ Mediratta, co-chair of the committee, similarly goes on to say that, “Frankly, the recent adversarial actions of the G.O.B. are counterproductive to a rapid conclusion of negotiations.”

 

In response to the release, Ambassador Mark Espat, Leader of the Debt Review Team, says that government has provided the committee with all the requisite information needed for a debt sustainability analysis.  Espat goes on to say that a statement by the committee in which it alleges that indicative scenarios have been released without consulting bondholders is a glaring untruth.  According to Espat, more than eighty-five percent of bondholders were contacted following the release of the economic update on June twentieth.  As it pertains to the Good Faith criterion, Espat also mentioned that the process does not mean that the coordinating committee will dictate government’s payment capacity. Alternative debt structures will be assessed once the debt sustainability analysis has been formed.

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4 Responses for “Bondholders want to evaluate more information”

  1. Ricky Malthus says:

    All this nonsensical jibberish!! Solve the problem don create another! The problem will be solved one way or another.

  2. busha says:

    this is what happens when people operate in a silo and have no idea what they’re really dealing with… we’re not working with inexperienced Belizean business men here… these are seasoned wordly businesses and thier lawyers… but as usual the ole “if you cant dazzle them with brilliance, baffle them with bs” approach is used…

    Good luck to them, really, I hope the best outcome is reached…. i bet they come back saying they solved the problem and then 2 weeks later Belize is dragged through the mud in the internaltional financial press…

  3. lovejoys says:

    Who cares if we are dragged thru the mud in the press? we call them presstitutes, b/c they serve their masters – the global elite.

    THE SUPERBOND CAN NEVER BE REPAID. The debt is too great. We must restructure or we will end up eating grass like the North Koreans (seriously).

    Please everyone stop licking the colonial boots of your former masters and stand up for your country’s destiny and liberty.

    Even if Belize struggles to make one or two more payments, we will still default. The future payments are much larger than the current payment. and we can’t even pay this one. It is inevitable that we will default. But its better to default before all the money has left the country and we are left with chaya and habanero to eat@!!

    And please don’t blame Barrow for the Global Economic Depression. Sure he’s no saint, but the worlds problems are not his fault. this would have happened under any administration.

    Love and Respect to Mark Espat for standing up to the IMF and Citibank to save the Nation. Whether you understand or not, He is a Hero!!

  4. subKonshus says:

    @lovejoys — “we are left with chaya and habanero to eat”

    I take it you used that example as a negative effect, but actually if we as a people would get our hands dirty in more agriculture and subsistence farming we would not have needed those bondholders monies in the first. Belizeans need to embrace the new reality. The chaya leaf will soon worth more than that paper in your pocket. How high wil the fuel price have to go before we realize we can’t afford to drive to the supermarket less than quarter mile away? Living within your means is not a crime. Many of us have no food to give our kids but we have credits in our phone and we have 150 channels on cable tv. What is wrong with us??

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