And, now, to better news. Prime Minister John Briceno today released an address to the nation discussing the historic retirement of the Superbond. As we told you, government is buying it over - for cents on the dollar - and they're getting the funds to do that from what's called a Blue bond - a unique instrument derived from the value of Belize's marine resource.
The PM discussed the savings to Belize in the 9 minute statement:
Hon. John Briceno - Prime Minister "This deal calls for a 48.3% discount to the face value of the super bond for those holders that tenders viewing the offer period a payment in lieu of accrued interest on the bonds. The government proposes to raise the money for the discounted repurchase through a loan from an affiliate of the nature conservancy. In connection with that loan, government will accelerate it's marine conservative policies in a manner that will dramatically enhance the preservation of Belize's precious seas, coral reefs and fish stocks. Belize's public debt will be instantly reduced by almost 500 million Belize dollars. To put this in perspective, 12 cents of every dollar of the public debt will be eliminated. This arrangement will also direct on average 8 million Belize dollars annually to marine conservation projects and upgrading the protection and management of our marine patrimony. Government proposes to capitalize a marine conservation endowment, who's investment earnings over the next 20 years will grow to 184 million Belize dollars. This endowment has been designed to ensure conservation project in perpetuity. In the short term, under the existing terms of the super bond, Belize would have been required to pay some 245 million dollars in interest alone during the 5 year term of our administration. With our proposals government will pay 115 million dollars in interest, thus generating cash flow savings of 130 million Belize dollars. Even after netting out the anticipated cost of the funding requirement for this operation, we expect that canceling the super bond will save for the Belizean tax payer more than 530 million Belize dollars in gross debt repayments. My administration promised you debt reduction and debt relief, this proposal delivers both in spades."
The PM stressed that it is not yet a done deal - as government has to get the support of 75% of the bondholders - it currently has close to 50%.
