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Belize a Serial Defaulter?

Another point of concern in all this Superbond talk is the classification of Belize as a serial defaulter. In Friday’s exclusive with bondholder Dr Carl Ross, he stated, quote, “It’s a really bad title and you know each time you default it sort of sets the country back in terms of its international reputation and each time you default it sort of lengthens the period of time that the country needs to honor its obligations to kind of get back into a position where it may want to access markets.” End of quote. Minister Christopher Coye notes that while he has no experience in being a series defaulter, he admits that it is not a title or classification that any country would want to be in.

Christopher Coye, Minister of State [FINANCE]:
Christopher Coye, Minister of State [FINANCE]: “The serial defaulter certainly doesn’t sound good. I have never been a serial defaulter but now looking a where we are as a country obviously there has been multiple restructurings of the bond and looking at the debt profile of Belize it’s certainly not commendable to see that we had a billion dollars in superbond debt back in 2008 and we have over a billion dollars in superbond debt in 2021. All that sounds to me that we’ve been paying interest for the last thirteen years. Interest that we don’t get back, that’s gone and we still owe a billion, in fact one point one billion dollars because capitalized the interest last year. We owe one point one billion dollars now. That doesn’t sound like a good debt management policy that’s been effected over the past decade whatsoever. Is it that we want to continue that policy and continue owing a billion dollars and just keep paying interest ? I would think not personally I would say that that doesn’t make any sense whatsoever and as an administration I think it’s irresponsible to allow that to continue endlessly. So I do agree that we need to address our debt sustainability, the superbond is one component of our overall debt profile but we do need to deal with it we cannot keep kicking the can down the road. I keep repeating it but it’s important to repeat, it’s important to underscore we have to be responsible. I certainly don’t want our country to be cited as a serial defaulter but it is what it is that’s where we are right now.”