Serial Defaulting “A Thing of the Past”
These huge savings afforded to Belize through the Blue Bond agreement is not money in hand, however. The savings are translated into significantly less public funds going towards debt repayment, and greater investments in marine conservation. So for those asking if the Briceño Administration is now able to revert to paying teachers and public officers their full salaries, Minister Coye says we are not quite there yet. What he is more certain about is with the newly agreed to terms, Belize’s serial defaulting will be a thing of the past.
Christopher Coye
Christopher Coye, Minister of State, Ministry of Finance
“The repayment terms for the first nine or ten years is interest only. So, on that first ten years, nine years, the interest rate is on a step-up basis. So, it starts off at three point two percent. So if you take off three point two percent, three hundred and sixty million that is what you will be paying the first year. It is going to be less than twenty million dollars Belize, where we were paying fifty million dollars on interest alone on the Superbond. So right off the bat, in that first year, we are saving over thirty million dollars.”
Reporter
“Senator Courtenay had mentioned in the Senate, for the Superbond, we had been paying back and paying back and we ended up owing more, until the end of the Superbond. What guarantees are there that this won’t happen again with the Blue Bond?”
Christopher Coye
“This time around we have an actual plan to pay it off.”
Paul Lopez
“How will we find the twenty million dollars?”
Christopher Coye
“Well we were finding fifty million dollars a year.”
Paul Lopez
“We were also labeled serial defaulters, in that we weren’t finding it as fast as possible.”
Christopher Coye
“But, we paid seven hundred million and thirty dollars over the eleven years of the past administration, while at the same time increasing that Superbond principal balance.”
Paul Lopez
“So you are confident we will be able to meet those deadlines and targets, annually?”
Christopher Coye
“Yes.”
The Blue Bond agreement is backed by a six hundred and ten million dollars political risk insurance.
