Belize's Prime Minister to Address the Super Bond Issue During a Press Conference

Tonight, the question is: will Belize go into default of its debt obligation on the stepped up US-dollar bond. The first payment, under the stepped-up eight and a half percent interest rate was due today; but as announced last week by the Prime Minister, government does not now have the twenty three million US dollars to make that coupon payment.

Some analysts, speaking with international media outlets believe that the announcement that Belize will not make the coupon payment brings the country closer to a formal default on its five hundred and forty four million US dollar foreign debt. In the absence of today's non-payment, there are further doubts that the Barrow administration will make any major efforts to make payment during the ensuing thirty day grace period.

According to the Associated Press, the Barrow administration has offered bondholders a harsh restructuring proposal that would imply reductions in the amount owed, lower interest rates or extended repayment terms.

Prime Minister Dean Barrow is scheduled to address the issue during a press conference scheduled for later this week in Belize City.

LOVEFM

================

Belize Skips Bond Payment Today

The Belize government has confirmed that no 2029 bond payments will be made Monday, giving the government and its lenders until Sept. 19 to agree on a restructured bond. If no deal is reached, the country will default on its $543.8 million in debt outstanding. Belize is in talks with investors to negotiate how to restructure the country's only bond, however the creditors haven't agreed to the country's proposal that includes either forgiving 45% of what they are owed, or delaying payments for 15 years.

"I don't see much room for a major departure" from the terms outlined in the proposal, Belize Financial Secretary Joseph Waight said on Monday.

A sluggish global economy has caused a slowdown in tourism and foreign direct investment in Belize. The bond restructuring proposed is designed to close the hole in the budget, the government says.

"Even if we were able to put our hands on short-term financing, it would not have assisted the process in the long run, and would have misled our creditors into believing the fiscal position was better than it really is," Mr. Waight added.

Wall Street Journal

======

Superbond's non-payment bomb drops on bondholders

We start tonight with financial news on the accumulated five hundred and forty four U.S. million dollar Superbond which has become the most pressing issue before the government. Following an announcement on August eight offering three repayment scenarios, the government missed the coupon payment due today for some twenty-three million U.S. dollars. A one month grace period to make that payment now kicks in and government is staring a default which will have serious implications for the economy. While the Financial Secretary, Joseph Waight, was unavailable for comment to News Five, he is quoted earlier today in an article in Bloomberg saying that the government is also unlikely to pay during the grace period. Echoing what has been the official line on the non-payment, Waight says, "We simply do not have the capacity to make the payment. We are hoping to engage with creditors as quickly as possible." Bondholders believe that the government is heading for a strategic default and is attempting to force bondholders to accept a huge discount of forty-five percent on the original value of the bond and to extend the date of maturity further away from 2029. The three scenarios offered on August eight have already been rejected by bondholders. So for now the situation is precarious and there is a high level of uncertainty in the month ahead.

Channel 5