Creditors committee reject super bond restructure offer

Flag of Belize

Flag of Belize

Punta Gorda, TOLEDO. Tuesday, January 17, 2017. The attempt by the government of Belize to renegotiate the over a billion dollars super bond hit a brick wall in New York today.

A creditors committee rejected the offer by the Barrow administration to restructure the Belize’s US$530 million super bond

This is the third time that the government of Belize is trying to restructure the super bond and the creditors, according to the international report, are not confident that it would bring about the desired effect Belize’s current economic woes.

The Reuters report notes that the proposal by the government of Belize “would reduce the net present value of the bond by over 40%.”

Belize is also seeking to restructure the amortization schedule and reduce the coupon on the note.

The creditors committee believes that the economic measures that Belize has put on the table as “unlikely to reduce future risks to debt sustainability or to the stability of the country’s currency peg in a sufficient manner.”

The creditors, according to the Reuters report, want the Barrow administration to put forward “a comprehensive home-grown adjustment program” which would be acceptable to the lenders.