As we've been reporting, government is in a position to float what's called a Blue Bond - which would replace the 500 million dollar plus Superbond.
And the Chamber of Commerce and Industry is singing their praises for it. A release says "Given the fact that Belize's high debt has for years been one of the primary driving forces behind a heightened tax burden placed on the business community and general public, the terms of the "Blue Bond Finance", which promises to free up more than BZ$170 million in cash-flow relief over the next five years alone, is welcome." End quote.
As we have reported it is the largest so called Blue Bond ever to be floated. These bonds put an emphasis on marine resource value. And in this case, it allows Belize to buy back the super bond debt at cents on the dollar. We asked the TNC Representative yesterday about the opportunity to realise these massive savings:
Julie Robinson, Belize Program Director, TNC
"Renegotiating our super bond is significant when you look at how it compares to our GDP. So, if you want to compare that to Seychelles you'll see that the Seychelles deal was was much smaller but it was also significant for them, so they felt it was worth it to protect 30% of their oceans and to go through with a marine spatial plan, so I think for any country actually to be able to renegotiate debt in way that will better the country, who wouldn't want to do that?"
Again, the Blue Bond buyout is only proposed right now to holders of the existing super bond, and 75% of them will have to consent for the buyout to proceed. So far, only 50% have consented.
