THE BELIZE SUPERBOND - think about it ? -

Caye Caulker, Belize. The site for a Central American world shaking conference on the BELIZE BONDS ISSUE. Don´t think too hard though, life still has to be lived and enjoyed here in PARADISE.



BELIZE CIVIL SOCIETY DISCUSSES DEBT RESTRUCTURING IDEAS FOR NEXT DICTATOR OF BELIZE, ( election in two weeks ) FOR FIVE YEARS.

Iceland was held up as an example by a discussion group on Caye Caulker early this week, on debt restructuring.
Iceland was pressured by the populace of that small country ( they stoned the HOUSE, where government ministers were meeting and wanted guilty banks to fail, during the last recession ).
Iceland is doing well, with GROWTH expected at 2.7 GDP this year, while the European Union has less than 1% GDP expected. In Belize we expect over 3.1s % GDP for comparison.
Iceland let the banks FAIL during the recession and what they did, is took the BANKRUPT banks over and made them into STATE BANKS. They then seperated the savings accounts of all ICELANDIC citizens, from the rest of the tangled mess in the bankrupt banks, and let FOREIGN DEBTS and CREDITORS go hang themselves in bankruptcy. The USA does something similar with Federal Bank Insurance. Icelanders kept their savings accounts now in the NEW State banks. Since all the failing banks were involved in the US DEBT SWAP real estate debacle, the mortgages were wiped out by the bankruptcy proceedings. Icelanders suddenly found they owned their houses, free and clear. Since then, the ECONOMY has boomed. Never been better, they say.
One of the cute things they did was pass LEGISLATION, making it ILLEGAL for the ICELANDIC GOVERNMENT TO PAY ANY FOREIGN LOANS INTEREST, in FOREIGN EXCHANGE. Such interest payments on foreign loans had to have the interest paid and accepted in Icelandic KRONER. The local currency.
This Belizean discussion group, wondered how that would help us in Belize? Well since our FOREIGN MUSA/FONSECA super bonds are in foreign currency and have to have their INTEREST PAYMENTS, paid in foreign currency. Such a law would change the dynamics of the MUSA SUPERBONDS, when the interest payments had to be paid in BELIZE CURRENCY instead, by law.
Speculation in the discussion group, had it, that changing FOREIGN LOANS to interest payments in Belize Currency, would stimulate investment of a pile of millions in the hundreds of millions, into the country of Belize. As you cannot easily exchange Belize currency into foreign money. The other thing, was that FOREIGN LOAN AND BOND HOLDERS, would likely want to get rid of their BELIZE SUPERBONDS and the cascade of SELLING on the LUXEMBURG EXCHANGE, would enable the government of Belize to buy back the BONDS at pennies on the dollar. They are already trading less than .40 cents for the dollar. Some could be bought by Belizeans also on the Exchange and then the interest payments of those BONDS not bought by the Government of the DAY, in private Belizean sector hands, would undoubtedly boost the local economy, as private local investors ended up re-investing in Belize with their interest payments.

The President of Guatemala has suggested such ideas are wanted by the Central American union, to develop the economies of our linked seven countries.
- think about it! -

Then you could concentrate on more pleasant things. Like this sunrise on Caye Caulker at 6 a.m. on a February morning in 2012. Caye Caulker mottos are GO SLOW. Or, NEVER DO TODAY, WHAT YOU CAN PUT OFF UNTIL TOMORROW.