BELIZE CITY, Mon. May 31, 2021– During Friday’s sitting of the House of Representatives, the Prime Minister, Hon. John Briceño, stated that the negotiations with the Creditor Committee representing the holders of Belize’s Superbond are still ongoing.
On May 20, the country defaulted on a scheduled coupon payment. Prior to that, a scheduled call between bondholders and the Minister of State in the Ministry of Finance was canceled. At that time, the bondholders had stated that no progress could be made in the renegotiation of the debt unless Belize signs on to an IMF standby agreement.
Prime Minister Briceño, as well as several members of his Cabinet and the Opposition, has been vocal in his opposition to the implementation of an IMF standby program, which could include a hike in taxes and mass retrenchment.
During Friday’s House meeting, PM Briceño stated, “Our position remains steadfast; there will be no IMF standby program, because there is no need for an IMF program. Government knows what must be done to restore economic and fiscal health, and our 2021/22 national budget is proof-positive that we are acting with purpose and a clarity to restore equilibrium to the public finances.”
Amounting to over U.S. 556.4 million dollars, the Superbond makes up forty percent of our total external debt.
“A quarterly interest payment on the Superbond was due on May 20th of this month. Government is not able to make this payment, given the critical state of the public finances, the severe impacts of the pandemic and the consequent rigid budget recently approved by this Parliament,” the Prime Minister said in his address to the House.
When questioned by local media. Minister Coye said that it was unlikely that the coupon payment would be made, since that cost was not accounted for in the 2021/2022 budget.
”We di meet right now with the bondholder. As I said, they di try play hardball, but we tell them plain: we don’t have the money to pay you. And don’t come and tell me, ‘alright we will reduce the interest rate and then you are going to pay us 10 years from now like what they have done with [you]’. We are saying, no we can’t do that. We need a haircut, yes from the principal, not on the interest, on the principal, because we simply can’t afford it,” the Prime Minister said.