Technically Belize does not enter a formal default mode until next month, 30 days after the payment is due, but government doesn't seem to be sweating it too much.

But, bondholders surely are - and it is felt that by Government holding off on the payment - will force those bondholders to the bargaining table where the terms for a restructured bond could be hammered out. Government has proposed three restructuring scenarios - which have been met with some degree of consternation by vocal bondholders. Basically, the proposals are either to write off 45% of the 543 million dollar bond, or stretch out the payment for another 15 years.

So what will happen next? Well, nothing really - not right now at least. Belize's rating may be downgraded to selective default - but we were there in December of 2006 when the Superbond was first being launched.