| Belize Didn't Default On Superbond |
| Thu, September 20, 2012 |
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| When we left you last night - the conclusion was that Belize had defaulted on its Superbond debt - but tonight, it seems not.
A press release coming from the Coordinating Committee of Belize Bondholders - which represents the owners of more than 50% of the Superbond - issued a release today saying two important things: One, that they've given a 60 day extension on the payment due date for talks to progress, and two, that the Government has made a partial payment of the interest payment that was due on August 20th. That partial payment is 23.4 million Belize dollars, half of the 46 million that was due.
And the release from the Committee also shows a marked change of tone. Whereas in the past they complained about lack of information and dialogue, today's release says quote, "conversations with the GOB are progressing towards a mutually agreeable restructuring of the Bonds and both sides have identified an appropriate framework to advance negotiations."
The Committee welcomes the partial payment and in exchanges co-chair AJ Mediratta offers, quote "the Committee has agreed not to seek legal remedies for a period of 60 days…The Committee is recommending that other bondholders refrain from seeking legal remedies during this period."
So, no legal action and where it once complained about a lack of information, the release now says, quote, "The Committee takes note of the debt servicing challenges facing Belize."
It's a Kumbaya moment for sure, but there are tough days ahead and a press release from the government of Belize says negotiations will advance on quote, a "workable approach to accounting for the effect on Belize's debt servicing capacity."
With the breathing room that this agreement gives, the next major development are expected in October when government starts to formally offer to exchange the existing bonds.
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