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GOB Moves to Restructure Suberbond

The Briceno Administration is looking to restructure the Belize’s Super Bond due 2034. In its Article Four Consultation, the International Monetary Fund noted as part of Belize’s debt management and restructuring that the Belize government understands critical nature of the financial situation and are looking at measures to remedy the situation. Along with this is government’s intention to restructure the super bond to restore debt sustainability through balanced and sustained fiscal consolidation and growth-enhancing structural reforms. Several bond holders have established a creditors’ committee and are hoping that consultations with government would be fair and constructive. Minister of State in the Ministry of Finance Christopher Coye explained to us that Government’s management team will meet with bondholders, with developing a path to debt sustainability being its main focus.

Christopher Coye, Minister of State [Finance]: “I think that their establishment of a creditor’s committee is not unusual I think in fact from the advice of our debt management unit we actually made the request that they should establish a creditors committee and so they have gone about doing that. The process will be in accordance with what is provided for in the legal documents of the super bond so we are just following that process.”

Reporter: But in terms of what we hope to be the the output are we looking for lower interest ? Are we looking for an extended payment, are we looking to capitalize again ? What exactly is the government’s intent ?

Christopher Coye, Minister of State [Finance]: “Well what we are looking for is a path to debt sustainability. So what you mentioned any combination or interaction of what you referred to are all items on the table. At the core it is to ensure that we develop a path to debt sustainability for the long term.”

Reporter: Has the government appointed negotiators on behalf of the government ? 

Christopher Coye, Minister of State [Finance]: “We have a debt management team, I won’t call them negotiators but we do have a debt management team comprised of legal and financial advisors.” 

Reporter: And this is the team that will meet with the bond holders correct ?

Christopher Coye, Minister of State [Finance]: “Yes.”

Reporter: Okay is there a time line that we’re looking at ?

Christopher Coye, Minister of State [Finance]: “Well right now we are focusing in on finalizing the budget so that’s where that in effect does play a part in the process so we have delayed a bit to ensure that we get full consultations with all the stakeholders but we do have to complete the budget process.”