- Part 2 of 2
This morning Tuesday September 7th. Prime Minister Hon. John Briceno released a video that explains the details of the deal that will settle the Superbond.
The presentation appears to be an appeal to both the ‘Super Bond Holders’ and the Belizean public.
Video Courtesy: Government of Belize- Part 1 of 2 (September 3rd. 2021 )
updated: Saturday September 4th. 2021
Today, Friday September 3rd. Channel1Belize.com went searching for some good news about Belize’s sovereign Debt (Superbond) with the intention of providing you (our readers) with a comprehensive understanding of the data and analysis of the ‘ball-&-chain’ known as the superbond.
One of the most recent news articles written by a global financial news organization about Belize’s Superbond or Sovereign Debt was done approximately 3 months ago (101 days to be precise) in that news article by Bloomberg News it indicated that Belize’s interest payment of $6.5-million US$ that was to be paid (May 2021) was not expected to be paid, as a result the global credit rating agency S&P downgraded Belize’s credit rating.
( Monday, May 24th. Bloomberg Article)
-quote-
“The Central American nation was cut to SD, or “selective default,” from CC by S&P on Monday after failing to make a $6.5 million interest payment on its $526.5 million so-called superbond due in 2034. It marks the country’s fifth restructuring or default event in the past 14 years.” -end quote-
According to that verifiable data, Belize owes $526.5-million US$ or $1,053-billion Bz$, wherein the original loan was $544-million US$.
Like all loans the interest payments are ridiculously burdensome, but that is the nature of borrowing. Belize has made at least $400-million US$ in payments so far, but the balance owed is almost still the same original loan of $544-million US$.
The Pandemic can never be thought of as a blessing,
But!, almost all small nations are struggling to pay their creditors, just like Belize, their primary income earning industries have been degraded by the Pandemic. Therefore a generous amount of understanding should be the mindset of bondholders/creditors.
Just about anybody can purchase Belize’s ‘super-Bond’ which currently trades at $0.35 to $0.41 cents on the dollar, depending on who is selling it.
Meaning, if you were buying enough, let’s say $100-million US$ worth of the ‘debt-paper’ you would pay $35-41-million US$ to own $100-million US$ worth of the debt, then you would wait for Belize to pay you the full amount. (in the technical financial markets that is called ‘Bond Trading’)
Today the ‘Government of Belize’ made a unique offer to the debt holders (those who own Belize’s superbond ).
The offer is to purchase the bonds for $550 for $1,000 of debt, or by-effect ‘BUY BACK’ the debt from the holders at a price of $0.55cents on the dollar, which is much better than they can sell it for.
It is a scenario ripe with a financial quagmire, which also includes
‘ A Land and or Marine Conservation Agreement‘ for money, those money’s will pay off the bondholders, and the land and or marine reserve will be held in trust by an NGO.
But it’s worth looking at by those that hold Belize’s superbond debt.
Belize wants out of the illusions of 2003, and it may as well be, because! the world has changed, the Pandemic seems to be unstoppable and some people are wondering if the end-is-near, due to climate change.
The illusions of the first decade and a half of the 21st century are now a laughable mess, and so is the promise of many other illusion-eers who interlaced ideas that never panned out to be reality.
With enough planning and vaccines, there may be better days ahead , but for right now we are all trying to balance our ship through these rough seas.
It seems that the creditors may agreed to accept the deal.
During a break at today’s House of Representatives meeting (Friday Sept. 3rd.) the Prime Minister spoke to the media about the developments of the deal which he said has been many months of negotiating, he also said “this is the best deal that Belize can offer.”
In June 2021, UK based Reuters Financial News reported that it was a $550-million US$ Debt. Contrary to the widely known original figure of $544-million US$, or $1.088-billion Bz$
Very Early Saturday morning (Sept. 4th.) Reuters Financial News reported that Belize may have finally settled the superbond “Marine conservation promise helps Belize strike ‘superbond’ deal”
The following is the offering document published by the Government of Belize
GOB – Facebook
Related News Article
Editors Notes
Reference Researched URL:
Standard & Poor’s
Bloomberg
Mexico City-based analysts
Omar De la Torre and Livia Honsel
Written & Compiled by: channel1Belize.com / digitalBelize,LIVE Staff writer – Friday, September 3rd. 2021 – digitalbelize@gmail.com