IMF Impressed with Belize’s Reduction of Public Debt
The International Monetary Fund (IMF) recently met with the Government of Belize to discuss the country’s successful restructuring and reduction of its national debt. According to the CEO of the Ministry of Economic Development, Dr. Osmond Martinez, Belize has reduced its debt-to-GDP ratio by up to fifty percent since 2020. Dr. Martinez, says the government’s efforts to improve fiscal sustainability and reduce public debt were some of the highlights of the meeting.
Dr.Osmond Martinez, CEO, Ministry of Finance, Economic Development and Investment: “They’re impressed because Belize’s home grown economic plan is performing well. Their most impressive point is that our debt to GDP went from 133% in 2020 to 63% now which is over sixty points which up to now it is for many economies and people who want to argue is how have we managed to bring down debt to GDP you know but it’s a combination of components one is the restructuring of the sovereign debts and two is the growth of GDP and so for example what we’re doing here today contributes to GDP growth because there is an increase in economic activity and and enables an environment to continue with economic growth in Belize. So IMF is very happy with Belize right now.”
Martinez says that one of the contributing factors to this drastic drop in the country’s debt is attributed to a combination of several components, which includes simulating GDP growth, as well as the impact of the Blue Bond Agreement.
Dr.Osmond Martinez, CEO, Ministry of Finance, Economic Development and Investment: “The Blue Bond had an impact of 12% directly onto GDP but it’s still having you know when there is an explosion somewhere you don’t know the damage that it creates you know it takes time to know. The Blue Bond transaction has created a positive damage to Belize whereby Belize has something to offer, whereby now international agents they want to know about the Blue Bond and so the Blue Bond should be one of the main marketing tools for Belize not only for renegotiations of any sovereign debt but also to let the whole world know hey Belize has something to offer. And so the Blue Bond indeed it has create a huge explosion that we don’t know how much more it will bring but it has definitely placed Belize on the map to the point that our Prime Minister about a few weeks ago he received an award in New York from the Latin Stock Market because of the sovereign restructuring of debt one that is a unique one in the world.”