A few nights ago, we told you about the government's update on the standoff with the holders of the the super-bond.
It said, basically, that a meeting with the bondholders' committee to discuss the proposed restructuring of the Bonds had to be cancelled after the two sides could not reach an agreement on key points. This includes the bondholders' insistence that Belize accept a full IMF program - which GOB has refused to do.
Well, the Bondholders have responded with a release of their own, saying, quote, "Bondholder Committee Notes Lack of Transparency in Belize's Proposal." It says, quote, "the Committee made several requests for critical information… Notably, the Belize authorities did not respond to the Committee's information requests.."
The release adds, quote, "The Committee respectfully reiterates that the implementation of Belize's economic policies would be more durably addressed in the context of an IMF-supported program…." End quote. The release then concludes, grimly, "the costs of Belize's decision should not be externalized onto the holders of the Bonds." End quote.
The Government of Belize has proposed to bondholders a 30% haircut while also pushing the maturity date back to the year 2041 and adjusting the interest rate.
The next payment is due in 13 days, and government may take a "soft default", as it has done before.
