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Feb 20, 2017

Superbond Default? P.M. Wants More Time with Bondholders

Dean Barrow

Deadline for the payment of approximately twenty-six million dollars towards Belize’s consolidated billion dollar debt, collectively known as the Super Bond, has elapsed.  That closing date is today and government, despite a recent trip by Prime Minister Dean Barrow to New York City to meet with representatives of bondholders, has not met its obligation.  That’s because the ongoing negotiation to restructure, for a third time, the Belize-US Dollar Bonds due 2038, has not yielded fruit.  PM Barrow returned to the country on Sunday and thereafter explained that while the hefty sum would not be paid today, government remains cautiously optimistic that an agreement will be arrived at within the thirty-day extension it is being afforded.  According to the prime minister, government has not defaulted on the payment and intends to make the payment ahead of the expiration date.


Prime Minister Dean Barrow

“I was accompanied by the Attorney General, as well as Ambassador Espat and this time I met not only with our own advisors but with the bondholders, or rather, to be more accurate, with the two co-chairs of the committee representing the bondholders.  We had a long exhaustive and perhaps exhausting meeting on Thursday.  I would characterize the meeting as having been tough but I’m happy to say that it never became contentious or if it did become contentious it never became rancorous.  There was no bitterness, no discourtesy.  At the end of the meeting my assessment is that the positions have been greatly narrowed.  Government left off then from that meeting with a new position in which there has been movement on our part, but a new position that really represents our final position.  The two co-chairs representing Greylock and another outfit called GMO must now take back what we have offered as our last position to the other members of the committee.  They are only the co-chairs, the committee, I think, perhaps constitutes its representation from maybe six or certainly five organizations and then there’s the larger number of bondholders.  So it’ll be a while before we know finally what the position is.  In the meantime, because I am sure I can anticipate your next question, we won’t pay the coupon that is due on Monday.  Monday is a holiday in the States in any event so it would not have been paid on Monday but it could perhaps have been paid on Tuesday.  We won’t pay but it would not be fair to describe that non-payment as default because, remember, that there is a thirty-day grace period.  So we will be going into the grace period but I really hope that we can wrap this up well before the expiration of that grace period.”

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1 Response for “Superbond Default? P.M. Wants More Time with Bondholders”

  1. CLUTE says:

    There you go bullshitting the ignorant and illiterate of Belize again with your big words and ramblings. First, not all banks and schools were closed yesterday. The stock market was closed yes. And, in terms of banking, and believe me, I know that, you were late (i.e. Belize) on your payment. So, as of midnight Monday, going into Tuesday morning, whatever payment was due on Monday, just accrued a late payment fee, whether it was assessed as a flat fee or as a percentage of what is owed as stipulated by that promissory note. If you and your government and your cronies hadn’t raped this country you’d have had the money to pay!

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