Both major U.S. investment houses, Bear Stearns and JP Morgan and Associates issued advisories on Belize today. JP Morgan cut its outlook for Belize citing "renewed worries over the government's finances." In its bulletin to investors, Bear Stearns asks, "Where does it end? Are there other skeletons in the closet?" And continues: "With these previously undisclosed revelations coming to light, will there be any impact on the policy-based loans from the IDB and Caribbean Development Bank? Belize is critically dependent on disbursements from these organizations over the next two years. We are investigating this matter. What happens next?" Well, that's a question no one can quite answer right now but the Leader of the Opposition says he hopes this international attention can force the government's hand.
Hon. Dean Barrow,
"This is now a scandal of international proportions. I spoke to officials at Bear Stearns and they have been following the developments keenly. They pull up the Channel 7 newscast every morning and it is something that is rocking the international financial circles with respect to the Belize bond, the Superbond.
The concern of the international financiers, the brokerage houses and those that hold the Belize bond, the concern has to do with the fact that these revelations make clear that there was serious material non-disclosure on the part of the Belize government when it took the Superbond, when it did the restructuring.
What is happening abroad will eventually make its way back home in fullness of time and in great detail and I think that will help to increase the intensity of the call in this country, which is building even as we speak, for the Prime Minister to call the elections, to resign and call the elections."
Of course, it all comes down to Friday when the government hopes to take the renegotiated Universal debt package to the House for approval. It will most likely be much like the 'Superbond' - a restructuring of the Universal debt: less money over a longer period of time, what investors call "a haircut." Indications as at the end of this week are that the Prime Minister may not have the full support from PUP representatives. Depending on what's in the package, that may change, however.
