Will the half a billion Belize dollar bond offering float or will it sink? Well according to government's timetable June 30th is the deadline and with one week to go, it's looking iffy. But even with half a billion-dollar sin the balance, the perennially cool Prime Minister Hon. Said Musa isn't perspiring, not publicly at least. He today coolly deflected the criticisms of the bond bashers, and said the good news is that while Moody's has publicly threatened to do so, it has not or maybe not yet downgraded Belize's rating.
Hon. Said Musa, Prime Minister
"Moody's has not downgraded. It has expressed an intention of reviewing with a view to downgrading but it has not done so yet. On the second part, in a few days we will be deciding whether or not to proceed with the bond issue."
Keith Swift,
So that would mean it probably is in trouble?
Hon. Said Musa,
"Well you can use that expression. Let's put it this way, we can always float a bond. The question is at what interest rate. If we do not get the right interest rate based on the varying negative and adverse market conditions at this time then we will simply put it off; we won't float the bond."
Keith Swift,
How will it affect our foreign debt commitments if we don't float the bond?
Hon. Said Musa,
"We have been meeting our debt commitments. The objective here was to give us a lot more cushion over the next few years. But even with or without the bond we will be able to meet our debt commitments."
While the Prime Minister makes the floating of the bond seem like an option that is as easily pursued as it is not, our sources tell us that it is a not a luxury, but a matter of urgency, as a cavalry of large payments are rolling in at the end of August.
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