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Sep 19, 2012

International media says G.O.B. default; P.M. says no default

Dean Barrow

At five p.m. today, a grace period ended for payment of the Superbond after government missed payment in August. Government’s failure to pay triggered a technical default.  The forty-six million dollar payment is only one hurdle facing the government as the bond fell zero point forty-eight cent to thirty-four point fifty-six cents after trading above thirty-five cents in August. There apparently is still no clear agreement with creditors and the government has met with Greylock Capital Management which represents some investors. Those meetings have yet to result in a restructuring agreement to the five hundred and forty four million US dollar bond. Some reports say that the three restructuring scenarios presented by the Debt Review Team on August eighth, offer some of the most aggressive haircut scenarios as compared to other countries which have defaulted on their debt. Late this afternoon Prime Minister Dean Barrow returned from Houston and offered baffling remarks. There has been no government releases on the issue but the PM appears to be saying that there are built in grace periods in the bonds during which the parties can extend the time of payment. Barrow says said that the thirty day period does not stop the negotiation and in his opinion there is no default.


Prime Minister Dean Barrow

“I had a conference call with our advisors this morning from Houston, that was at nine o’clock Belize time and we certainly were, it appeared, making some progress with the bondholders. Now if things changed dramatically between then and now, I would not have had an opportunity to be briefed, but I am pretty confident that we are in decent shape as far as the negotiations are concerned.”


Jules Vasquez, Channel 7

“Sir, will a compromise be worked out?”


Prime Minister Dean Barrow

“Well, it depends if you’re talking about a compromise immediately or a compromise over the longer term. But actually I would say that I am fairly optimistic that in both cases, a compromise will be reached.”


Jose Sanchez

“Has there been any partial payment for any extension of the deadline?”


Prime Minister Dean Barrow

“Well, there’s been no partial payment yet. We have been talking about the possibility of a partial payment. It would not be, if it is met, so that the deadline might be extended. I’ve said that the deadline and the triggering of a technical default doesn’t have any serious practical consequences. In any event, there would be extensions that are automatically built into the process. But we are prepared to demonstrate some good faith if in turn, we get from the bondholders what we consider to be reciprocity. And I will say again that the discussions have been proceeding in a fashion that makes me feel there is a good basis for cautious, guarded optimism.”


Jose Sanchez

“So those reports, from Bloomberg for example, stating that we have defaulted, are not true?”


Prime Minister Dean Barrow

“Not as far as I know. In fact I would say they are most untrue. But I insist I don’t know what has happened between when I spoke to the team at nine Belize time this morning and now. In any event, I can understand how attention would be concentrated on the possibility of a technical default. Still, I must make the point again that ultimately that’s neither here nor there. There is, built in, these grace periods that give us more than enough time to work things out before we call a halt to the negotiations and say yes we are in default and we will deal with it and you bondholders, you deal with it in your own way. But there’s not any sense at all in terms of my analysis of the situation that we’re anywhere near to that point, both in terms of the physical timeline but as well in terms of the way discussions have been progressing between the two sides.”

Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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20 Responses for “International media says G.O.B. default; P.M. says no default”

  1. Ricky Malthus says:

    The country of Belize must not be made to be drawn through a continuous, lenghty, economic and financial torture. We must come to an agreement to pay not only our external debts but all our debts so we can continue to develop and grow the economy. The politicians must be made to understand that economics override politics and must defer to logical, financial facts. At this point in time, the Superbond team has hit kryptonite, and must adhere to proven methods to solve this issue. Scores of countries reschedule and restructure their short term and long term debts everday without creating a stir or tempest in a teapot. Why do we have the histrionics and melodrama in Belize? What is our motivation? Who do we want to embarass? Funds have been allocated and approved to pay the coupon due so why the agony? The real reason!!

  2. Rod says:

    Just total lack of leadership this man is a joke we can’t look any worse the biggest thing hitting this country and all he can say is he doesn’t know every question you ask him he doesn’t know he is not sure maybe wow it makes him look like he has been smoking some good stuff.

  3. Rod says:

    This tha no the pm and this gov fault tha the fault of the people of Belize.

  4. Hatari says:

    Can the banks/bond holders reposes the entire country? LoL! We need to hire a professional property management company to run the whole country. It is evident and now proven that our leaders have no clue on how to do it right. You think this idea is radical? There are management companies that control much larger operations than Belize. Donald Trump could do it, get it right and make a profit!

  5. Bear says:

    I remember when President Clinton said, “It depends on what the meaning of ‘is’ is.”

    I fear our honorable PM is cut from the same cloth, is deranged, or both.

    Meanwhile he is steering the nation straight at the cliff, playing “chicken” with our children’s future.

    I’m not happy, are you?

  6. Truth says:

    You must think YOUR Belizean People Stupid no.. Frig get your A** out of office and give back the money you took..

    its too much man.

  7. me says:

    lets march to his house force his resignation, imprison him and his wife for traitors to the nation

  8. Lucas says:


  9. Lewis says:

    I want to be a citizen of a RESPECTABLE, HONOURABLE NATION.

    I don’t want to be a citizen of a PIRATE NATION.

    I am certain that 99% of Belizeans agree with me.

  10. neruda says:

    The questions that need to be asked and answered are these: What was done with the money that was borrowed? Where is it? Why do we have to pay for a loan that was not used for the good of the country? Why don’t we hold the PUP under, whose reign this loan was made, what was done with the millions of dollars that was borrowed that has caused this “Superbond” controversy? WE CANNOT BLAME THE UDP FOR THIS LOAN AND FOR DEFAULTING. Instead, we should force the current PUP representatives-MUSA, FONSECA, BRICEÑO, MARIN-to explain to us what was doen with the money they borrowed, ask them to return it and take them to court to force them to explain to all Belizeans what they did with this money.

  11. A Jew says:

    Belize is in no default? Where you live Dean in Mars or in Uranus. Jeez what a joke.

  12. Lewis says:

    neruda, then you should hold these PUP accountable, and use the LAW to bring them to justice, which Barrow has NOT done in 5 years already. And this is Barrow’s fault.

    Don’t get creditors involved in this mess. Creditors don’t have political colours. The are willing to lend to either PUP or UDP. It makes no difference to them.

  13. Admittedly Leaning Blue says:

    Sigh, Neruda, here we go again. UDP campaigned in 2008 knowing that we had a superbond and would have to pay. The PUP were punished at the polls and the UDP elected to solve the problem. What did they do? Fight with tom dick and harry for 4 years…oh, and also rack up about half a billion more in debt owed to owners of BTL and BEL, just so Dean and Avery can beat their chests. Not to mention legal fees to lois and dennys. But back to the superbond: sure a lot of it was spent unwisely, which is why the people punished the PUP. HOWEVER, still recall: 4 hurricanes, marine parade, coney drive, southern highway, …..oh, and let’s not forget UDP loans from prior administrations as well, since the superbond was a compilation of decades of debt.

    Now can we move on to solving the problem before us instead of finding excuses??

  14. Ricky Malthus says:

    @Neruda! let’s analyse the line by line items in the loan and verify what the PUPs are responsible for ; and let’s audit [independently] what the UDPs incurred such as cost of nationalization of BTL,BEL, $50 million transferred, taken, stolen from SSB( for what purpose), the $66 million housing loan forgiveness just before the election, the scores of millions paid to cronies for ghost workers and fictitious programmes. I agree let’s open the books to the world to see.

  15. Al says:

    If this super bond was inherited from the PUP,fact is that the incoming government officials knew that this bond was out there, and that as a part of the inheritance of office it would need to be paid back. So there is no excuse, budgets should have been established to take into account the outstanding payment. Planning is a part of governing and it seems as if this PM is cluless about this part of governing. He knows how to throw words and quote foolish sayings when it serves his purpose.
    His exwife got rich on the backs of Belizeans, his son was made ambassador, that folks, was a big ploy,so that he would be able to travel without denial due to his conviction in the United states,

    Belizeans need to begin to reason things out for yourselves and then begin to stand against the s$$$ that is being dropped on you.

  16. Pb says:

    Thank God for people like ‘Admittedly Leaning Blue’, who are seeing the bigger picture. Many people seem to forget the debt UDP left Belize in in 1998 when the were ousted to viciously. PUP accumulated their own debt and mismanged no doubt. PUP had their faults but thanks to them Many people both red and blue have a house today. Many developments were under the PUP example Belize as tourism country was launch under the PUP. PUP wasted a lot but they did a lot. Dont be blinded. UDP just upset cause after 10 years they were re-elected to clean up some of their mess.

  17. Bongo says:

    It is funny how people seem to forget how exactly it is that WE all ended up in this mess. It does not matter whether PUP or UDP WE put them there. This thing has been in the making since the early 1990′s when WE were spending on things like the Civic Center, Pallotti Roundabout Overpass, the Fire Station, The Belize Market, The ‘Infrastructure’ Project, Free Education, and every other project that out governments borrowed MILLIONS of dollars for from all over the place. WE as people elected these people to lead us and sit idly by as they take advantage of us. Unfortunately, the money has long been spent, and we have NOTHING to show for it; our people ( our #1 resource) are killing each other in record numbers and we owe MORE $$$ now and now one has any ides how to pay for it. Yet we still expect these same politicians to fix this mess??? This will probably just end up costing US more MILLIONS in endless litigation ….

  18. Ted says:

    I totally agree with Ricky,this country has to move forward,people being murdered every day,no jobs being created an the list goes onnnnn..what is this government doing about that..WHAT???I THINK WE REALLY NEED TO DIG DEEPER AN BRING CONCRETE FACTS BEFORE WE SAY SOMETHING…U THINK BARROW THE WORRY BOUT WEE THE POOR PEOPLE IN THE NORTH AND IN THE SOUTH???SINCE THEY GOT INTO OFFICE WE NUH SEE THEM, THEY COME ROUND TILL ELECTION THE GIVE CHICKEN CUTS AND YET WE VOTE FUH THEM FUH CONTINUE MESS WE UP…my Belizean we need to stand up and shake this people in the office getting big bucks for nothing…get out there and go on the ground and see weh the haapen and sweat wah lee bit then you will see how hard it is to live..saying something is different from doing it..we need to bring in investors in this country but we want this government is doing trying to put manopoly on the country,more than likely who you think want to come an waste thier money????who not even Donald Trump..we have to fix our problems here first,,an fix them one weh the squat dah office dah belmopan..just a peace of mi six sense…

  19. Bear says:

    From these many comments, I see a consensus, red, blue, and otherwise: we ALL seem to be fed up with the disastrous place in which the Jewel has been placed by liars, fools, and thieves from BOTH parties.

    Somehow I think common Belizeans need to work together OUTSIDE of the political parties, maybe through churches or some other organizations, and protest openly, obviously, and continuously until the political parties fall, and a new government with entirely new leadership can try to get us back on a good path.

    We need to start over without UDP and PUP and their respective leaders. Nothing but bad from those folks for a long time.

  20. will says:

    Ok i hear everyone giving there opinions, but that’s not going to help. We all need to do something. Our beautiful Country is being corrupted and we need to come together and fix this. I’m in the process of organizing an organization help the Children of Belize. We all need to work together, people who are living abroad need to help and stop blaming this one and that one. By blaming people that doesn’t do or help the situation. Alos we need new faces in all Parties young blood with new ideas and people who are going to be honest and do what’s best for the country. My goal is one day go back and run for Office, if anyone has ideas and need support in the meantime email at We need to have out own Belizean own restaurants, Clubs, Bars, Resorts. And not having to worry that our own Belizeans are going to bring us down or be jealous and not support you/us. Also get stricter with the gangs, with the rappist and child molesters. Change the laws and work together. Get in touch with the people and see what needs to be done to improve the different commmunities. Be proactive and not wait for something to get done.

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