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And while the Prime Minister is in New York, the meetings with bondholders have concluded.  According to a release on the Central Bank website, government is proposing to bondholders something called a “Consent Solicitation Statement.â€￾  This is kind of like a first offer, which government will send to bondholders in early January 2017.  Government is asking for responses by mid-February of 2017. If at that point, 75% of the bondholders agree with the terms in the Consent Solicitation Statement – well then Government hopes to finalize a new agreement with bondholders before the next Superbond payment is due on February 20, 2017.  But that’s only the plan; it could get a lot more complex and drawn out, if fewer than 75% of the bondholders give their consent.

Likely, bondholders will want the Government and the people of Belize to “share the pain.â€￾  And that’s why the press release says that , quote, “Government is seeking Parliamentary approval for a rigorous fiscal reform agenda.â€￾  These fiscal adjustment measures, include refinancing the Superbond, and, in the release,  Government is inviting bond-holders, quote, “to comment on possible structures for amending the financial terms of those instruments in order to put the Bonds on a sustainable footing.â€￾

Of course, that’s what bondholders thought they did three years ago with Superbond 2.0, and that’s why this time, government stresses, quote, “Its objective is to put the 2038 Bonds on a permanently sustainable footing. No one -- least of all the Government of Belize -- wishes to contemplate the prospect of a fourth restructuring of these instruments.â€￾ End quote. 

Government suggests that the formula to fix the Superbond could include, quote, “a principal haircut, adjustments to coupon, an amendment of the amortization schedule, a stretch out of final maturity, or a combination of two or more of these techniques.â€￾  It concludes, breezily, quote “The Government is approaching the matter with an open mind.â€￾