Saturday, January 31, 2009

BELIZE BOND HOLDERS - an offer to buy at .20 cents


In the next few years, the current Belize BOND HOLDERS have a scheduled increase of 50% increase in interest payments. About two years after that, the interest rate is scheduled to BALLOON again another 100%. Belize is earning around $750 million a year, from which currently $250 million thereabouts goes to BOND HOLDERS as low interest payments on around $2 billion in BONDS. When the final interest rate BALLOONING comes into effect, ALL OF the Government Revenues would have to go to paying BOND HOLDERS their interest. The Government of Belize currently costs around $550 million a year to maintain. The Government Revenues of $750 million and in what the DAVOS economists of Switzerland predict, a deep downturn for 2009 and 2010 in the world economy, followed by a flat world economic outlook, indicate that Belize Government tax revenues are unlikely to grow very much for ten years. Therefore one can see with a $750 million revenue base for the government and over $700 million required in a few years to pay just the interest on the BELIZE BOND, something will have to give. My bet personally, is that current Belize Bond holders are going to lose their shirts.
That said; We have a request for $25,000 USA purchase of Belize Bonds by someone bid at .20 cents on the dollar. Local newspapers said the last average sale of Belize Bonds was at .32 cents on the dollar. Do any BELIZE BONDHOLDERS wish to sell this JUNK BOND? Contact Ray: Belize telephone 663 5580 if so? Perhaps we can facilitate a trade in this BOND.

"I am happy to say we do not own any of their bonds," said Daniel Hewitt, an economist with New York-based Alliance Capital Management LP, which manages about $163 billion in fixed income securities and has about $9 billion in emerging market debt. "We sold out because we realized they were going to default."

Alliance Capital owned an "awful lot" of Belize's international bonds and sold them all earlier this year before the bond price dropped, Hewitt said.

Belize's debt represents more than 90 percent of gross domestic product. Negotiations with creditors may be difficult, according to New York-based S&P.

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