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Oct 2, 2012

PM returns from IDB and IMF meetings; partial guarantee in sight?

Dean Barrow

After making a partial payment of eleven point seven million dollars on the twenty-three point five million dollars August coupon of the superbond, bondholders agreed not to take legal action against the government during a two month period while negotiations take place. The Prime Minister, accompanied by members of the Debt Review Team including, team leader Mark Espat, Financial Secretary Joel Waight and Central Bank Governor Glen Ysaguirre, left for Washington on September twenty-seventh. They participated in discussions with representatives of both the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB). We caught up with the PM on his return where he provided us with an update on the restructuring. Barrow says he hopes to launch a debt exchange offer by the end of October or in early November and to secure a partial guarantee of the country’s debt from the IMF.

 

Prime Minister Dean Barrow

“We met at the highest level at the IDB with President Moreno and a large section of his staff. At the IMF, we met with Mr. Min Zhu who is the Deputy Managing Director, but the one in charge of the Western Hemisphere into which sort of constituency Belize falls. He also had a large team at the meeting. So it was in fact extremely useful; a very useful and wide range comprehensive consultations we had with both institutions.”

 

Jose Sanchez

“With regards to a partial or full guarantee of our debt restructuring, are we underway at least with the IDB towards that? What about the sixty days extension we’ve been given by the bondholders?”

 

Prime Minister Dean Barrow

“Well there is no question of a full guarantee. We have not asked the IDB for a full guarantee. It is well known that we have asked for a partial guarantee. And indeed that was part of the menu of items discussed between ourselves and the IDB at this meeting. All I can tell you is that the process is very much entrained; there are all sort of protocols to be followed by the IDB. This is, for them, unprecedented. And so the technical inputs, the care that has to go into the decision making process with respect to Belize’s request, means that it’s going to be a fairly long drawn out exercise. I can say that we were satisfied that all the considerations that are appropriate to Belize’s request are being actively studied by the IDB and the discussions that we had like I said were extremely useful.”

 

Jose Sanchez

“It’s going to be drawn out, but do you feel a framework for restructuring can be done prior to the end of this year?”

 

Prime Minister Dean Barrow

“Well remember now we’re talking about two things. What’s of critical importance is the negotiation that is taking place between Belize and the bondholders. The role that we ask the IDB to play, the role that we ask the IMF to play, in terms of their case particularly in a post restructuring scenario, is very important. But clearly, the principal preoccupation of Belize and the principal event that is ongoing is the negotiation between Belize and the bondholders. Those negotiations or that negotiation takes place on a completely separate, perhaps parallel track from whatever talks we have with the institutions—with the IDB and the International Monetary Fund. Those negotiations, again, are ongoing.  As you know, after we made the partial payment, there is an agreement for a sixty day extension. We actually hope that we can reach a point with the bondholders where we can launch the debt exchange offer by the end of October or certainly and not later than very, very early in November. That’s what we are working towards and I don’t see any reason why we would have any difficulty in meeting those deadlines.”

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8 Responses for “PM returns from IDB and IMF meetings; partial guarantee in sight?”

  1. Storm says:

    I assume part of the reason negotiations will be drawn out is that the auditor general discovered our national account books are in a shambles, if not entirely fraudulent.

    That happened on UDP’s watch, so PM Barrow has to answer personally for that mess.

    It’s our money, the nation’s money, not the politicians’ money. Let’s keep the books open so we can see every dollar that is spent, and where it goes. There is no honest argument against that basic position.

  2. Rod says:

    Worse pm in the history of this nation

  3. Hmnn says:

    Sounds like this PM came back empty handed. I hope he did not give any tongue lashings to the IBD and IMF. I wonder if instead it was the IMF tongue lashing him for the go fly a kite remark.

    I would think that the IMF and IDB will want to see whether the Courts agree that his 8th constitutional amendment and his nationalizations were indeed lawful. Aren’t those cases before the courts right now. Would IMF and IBD still want to partially guarantee an unlawful nationalization? Could that be the protocols PM is taking about?

  4. Uncle Benji says:

    Drive any street of any big city in the United States, and at most traffic lights or street corners, a nasty and shameful sight awaits you…………. beggars with cardboard signs begging for money. Some of these beggars are genuine homeless people; but most of them are nothing but hustlers, con artists.

    Dean Ali Ba-Barrow and Mark EvanX Flunkie Espat just got back from a successful beggars tour. I wonder how Belize and Belizeans were percieved? Genuine poor country, or a nation of crooks, hustlers and con artists?

  5. aldo says:

    reading all these articles and not one of you is anything less than a hypocrite. You see you are dying for the pup to come back and restore balance and order. See the pup,s are honest hardworking politicians who only care about the wellbeing of the country. Just because you stole yesterday and got away with it makes you righteous. And get this I am not blaming only the pup, the udp’s are in it deep as well. See I blame all of them, theif da theif and there is no getting around it. The childish mentality of brainwashed people is what is wrong with this country.

  6. Admittedly Leaning Blue says:

    Maybe the IDB folks were too busy flying kites to help Belize.

  7. Storm says:

    Gee, Aldo, maybe I’m a hypocrite, but I agree with your basic premise — we haven;pt had an honest government this century! I’m against all the crooks, both UDP and PUP. The future of our nation, the well-being of my children and future generations, are a lot more important than any short term gifts, promises, or lies that career politicians can give me.

    I’d join a revolution before I would support either of the institutionally corrupt parties as they presently exist. And I think there is no hope for either of them to reform from within. I’m looking for an honest alternative to support — I’ll vote for Al and Malthus here if I can!

  8. Liberty and Freedom says:

    It all depends on what we know and understand about the IMF, the World Bank, IDB and other global institutions that create money out of thin air. They all report to the Bank of International Settlements in Basel, Switzerland. They are the bank for central banks. So, Belize’s Central Bank in essence “reports” to the BIS. The US Federal Reserve reports to the BIS, in fact, they sit on the Board of Directors as permanent members along with 19 other major countries. The BIS plays the money “God” over all the countries in the world. They already know what the Belizean debt looks like and our GDP. The GOB has already shot itself in the foot from some of the comments by the Prime Minister concerning paying our debt. Who would loan this country any money without guarantees? Financially we look like Greece. Everyone thought Fortis was screwing us. Not many people will know, nor understand the terms of any “agreement”. In the long term, the working people of Belize, mainly those who own businesses will “foot the bill” along with the bondholders. In the USA Obama (the Saviour) screwed the GM bondholders when he decided that the Government would run General Motors. Not much you can do when you are right and the government is wrong. They “own” the big guns, the troops, the police….
    Revolution takes money and outside support, Storm. In the end you wind up with a government like Egypt. The real answer in today’s world is to find a Ghandi to mobilise the masses. Unfortunately, Belize has a very diverse population (unlike India) – we need someone who appeals to everyone. Back to the Central Bank of Belize – he who owns the gold rules….we do not own the gold. The PM needs to find humility very quickly without giving away our Sovereignty.

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