On Friday, business Senator Godwin Hulse took to the media to complain bitterly about the US$50 million fee, payable in cash to those bondholders who opt to participate in Belize's 'Superbond' package. Well today Financial Secretary Dr. Carla Barnett says there may have been a lack of communication between her office and the Senator, because that's not quite how it works.
She explains that the $50 million participation fee is money that is owed to creditors. It is owed because all payments were suspended in early December - when the bond offer was launched. At that time, the government of Belize promised that all bondholders who participated would be repaid once the bond closes on February 20th.
So for those bondholders, the payments, $50 million worth, were suspended and once the bond goes through, they will be re-paid. And Dr. Barnett says that money is not from Venezuela, it was budgeted as loan payments.
As for Venezuela's $50 million, Barnett confirmed that the Venezuelans have asked for their US$50 million loan to Belize to be included in the bond - and that is for their own purposes, so that instead of a promissory note from Belize, they can have, and if they choose, trade a global bond.
