Belize - Belize News - - Great Belize Productions - Belize Breaking News
Home » Economy, Featured » Bondholders reject new G.O.B. offer and hire lawyers
Dec 4, 2012

Bondholders reject new G.O.B. offer and hire lawyers

Late this evening, Belize bondholders rejected a new offer from the Belize Debt Review Team on the restructuring its five hundred and fifty million dollar superbond. In this latest hurdle in the negotiations, the Bondholders say they have also hired lawyers since a sixty day reprieve on legal action has expired. Bondholders had agreed not to pursue legal action for 60 days after Belize paid half of the twenty-three point five million interest payment due in August. But the grace period has now expired. Last week Thursday, Belize presented new counterproposals. But a committee set up to represent bondholders said the new proposals still fell short and they had hired law firm Arnold & Porter to act as their legal counsel. While Belize says it cannot afford to meet rising interest payments on the bond, the bondholders say they cannot accept a haircut of up to forty-five percent. “According to AJ Mediratta, of Greylock Capital Management, co-chair of the bondholders committee, they “will be spending the next few weeks evaluating its options, but remain strongly committed to a good-faith collaborative process and will make itself available to the (government of Belize) as required.” The revised offer included a lower haircut of thirty-three percent and an initial interest rate of four point five percent that would step up to six point seven five percent after five years – more than the three point five percent interest Belize originally proposed.

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.

Advertise Here

7 Responses for “Bondholders reject new G.O.B. offer and hire lawyers”

  1. Storm says:

    “Haircut” simply means you’re not going to pay back what you borrowed. In this case, we borrowed $550,000,000, and Barrow & Co. offered to repay only $300,000,000 — meaning the lenders lose a quarter billion dollars right off the bat. I don’t think GOB has any leverage to force a loss like that on people who lent us money in good faith. We need to make a much more serious and honest offer. I’m personally embarrassed that GOB approaches this matter, which affects our national integrity, like a street hustler. There are experienced, professional firms that handle negotiations like these, but we haven’t hired one.

  2. Gone fishing says:

    Too late loosers, should have paid the attorneys long time ago. Best ones gone!

  3. Anthony says:


  4. Rod says:

    Just pay unu damm bill and stop thief.

  5. joe says:

    To: PM
    Transparency International said the findings of its annual study reinforce the perception that economic failure is linked with public malfeasance(wrongful conduct by a public official). Belizeans in the USA are willing to help, but Belizeans at home need to stop crying and be responsible, We need to restructure our Tax cods, every one pays income tax . Eradicate corruption in Government, hold those accountable who use office for personal gains, transparency is the best policy, get Educated “Belizeans” ( it is a shame that Belize has a lot of qualified US educated belizean and yet stand for the status Quo ) and you need to be a born and raised belizean , live within the community, make the salary of elected officials as reasonable so they need not get bribes disclose all finance of every one that wants run for office. It is high time that the Educated stand and rise, bring Belize to standards. Belizeans has potentials but they sit on it. ( if belizeans want, I am sure the US GOV. is willing to help get back all the money, past leaders has in the Cayman, it should be enough to cover the bonds. But if nothing is done, Belizeans, Better take a look at the austerity measures in Greece. Easy patch now is to restructure Ministers, CEO, head of departments, show the lenders you are willing to make change, before it is to late.

  6. Bear says:

    @Joe, you have good suggestions.

    Personally, I would not limit public service to “born and raised” Belizeans. We’re a small country without an accredited university, so we may not always produce the top-flight leadership and technical talent we need. We already have born and raised elected officials, and they got us into this hole, and are as incompetent and corrupt as anyone on the face of the earth — can you say Gapi?

    Even the US entrusted its foreign affairs and security to a foreigner named Henry Kissinger, and got good results. (And now they’ve elected Barack Obama, and only God knows where he was truly born!)

    I agree with all your other suggestions — we need a new start and a new constitution, with separate branches of government, checks and balances, transparency, everything done in the sunlight — and prison and confiscation of property for officials who are dishonest. Bribery and theft of public money are like treason, so those offenders should hang.

    Such change will only come from a nationwide campaign of civil disobedience and protest, which historically has brought down dictators and empires. I’m revolting, are you?

  7. Henry Alvarez says:

    I personally think its a bold decision mad eby the government of Belize we dont have the money and we shoudl be persueing the people that borroewd the money to show us where that money went and how it was spent. why should this government need to be going thorugh all of this for someone else mistake? my simple oponion to keep every thing clear i didnto vote for this government!!

You must be logged in to post a comment Login