74 F
Belize City
Monday, April 12, 2021
Home General Super-bond grace period expires – Belize discusses part-payment option

Super-bond grace period expires – Belize discusses part-payment option

GOB urges against “legal wrangle”

“…negotiations with the creditor committee advisors and non-creditor committee bondholders continue,” says Ambassador Espat

Wednesday, September 19, marks the end of the 30-day grace period for Belize to make its August 2012 semiannual payment on the US$544 million super-bond, which it has been trying to renegotiate with bondholders.

Belize defaulted on its August 20, 2012, payment last month, citing an inability to pay – but calling on bondholders to work with the debt negotiation team to come up with a restructured debt relief scheme.

Government has said that it would not likely find the funds to pay within the grace period, which expires a month from now.

“Unless something were to fall out of the sky – that doesn’t happen these days – there can’t be any material change in our circumstances over the next 30 days,” Prime Minister and Minister of Finance Barrow said at a press conference held late August.

Ambassador Mark Espat, leader of that debt review team, told Amandala Monday that, “While the grace period elapses later this week, GoB [the Government of Belize] believes that all parties are aware that a legal wrangle is, ultimately, counter-productive, and that negotiations will proceed apace.”

Espat told us that negotiations with the creditor committee advisors and non-creditor committee bondholders continue, and that the Creditor Committee has offered to extend the grace period. Consequently, the parties are discussing part-payment on the US$23 million past due.

“While there is no consensus as yet on proposed new terms,” he said, “the Government remains completely convinced that only through good faith, transparent negotiations can a fair and timely agreement be attained.”

Committee spokesperson, Ajata Mediratta, partner at Greylock Capital Management LLC, said, “The Committee can confirm that active discussions are ongoing, and that the tone appears constructive, but we have no public comments at this time beyond that.”

According to Espat, the Government is also keeping the international financial institutions (IFIs) abreast of the progress of discussions with bondholders.

- Advertisment -

Most Popular

Two female cops fined for talk show appearance

BELIZE CITY, Wed. Apr. 7, 2021-- In late January, we reported of a groundbreaking legal victory in favor of two female police officers who...

Two officer cadets graduate from Mexican Naval Academy

BELIZE CITY, Wed. Apr. 7, 2021-- Two officers in the Belize Coast Guard recently graduated from the Mexican Naval Academy with Bachelor’s degrees. Officer...

WHO – approved vaccine is no threat when compared to bat virus

There are studies that claim that the animal we know as modern man appeared on the earth about one and a quarter million years...

Curfew extended to Mid-April 

BELIZE CITY, Weds. Mar. 31, 2021-- The nationwide nightly curfew was set to end on April 3, but a joint decision handed down by...