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Jun 17, 2015

Moody’s Investors Service Says Belize’s Debt is Unsustainable

Earlier this month, BMI Research, a leader in financial information services, made public the results of a research into Belize’s existing economic state of affairs.  That forecast was dismal, as it is expected that the country’s debt dynamics will remain unstable, with an imminent threat that Belize will strive to access capital markets or even face a debt crunch.  Another report issued late this evening is echoing a similar sentiment.  According to Moody’s Investors Service, while the present financial position would not result in a significant increase in the public debt-to-GDP ratio, the recognition of liabilities from the nationalization of B.T.L. and B.E.L. could push public debt to above ninety percent of GDP, rendering debt unsustainable.  The release goes on to say, “in addition to the risk of fiscal slippage from electoral spending, the sovereign faces increased debt servicing costs from the first step-up in the coupon rate on the restructured bonds, as well as the partial amortization of the super bond in 2019.”

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