Gossip on the superbond predatory lenders, snare trappers, of the economy of Belize; made with corrupt government politicians of yesteryear. FROM THE BELIZE CULTURE LISTSERVE DEBATES.
The fact that the current superbond trades at such depressed levels suggests that, at least theoretically, there is room for mutually beneficial gains for both bondholders and the government.
Options:
1. Considering the low prices of the superbonds, Central Bank can use its reserves, which were around 4 months of imports at the end of 2011, in order to secretly repurchase 8.5% notes at 50 cents on the dollar and then refinanced the amount with a multilateral at an interest rate of perhaps 3%.(insert Vice President Joe Biden comment about Obamacare here )
2. Elimination of the bond amortization which is supposed to start in 2019 would create a win-win situation Since Belize would have difficulty making such amortization payments anyway.
3.The GOB could sell "carbon stocks" to foreign governments of industrialized countries wishing
to comply with international efforts to reduce emissions of greenhouse gases
from deforestation and forest degradation (known as REDD or REDD+). As an example, Norway’s $1 billion USD REDD+ investment in Indonesia.
Options:
1. Considering the low prices of the superbonds, Central Bank can use its reserves, which were around 4 months of imports at the end of 2011, in order to secretly repurchase 8.5% notes at 50 cents on the dollar and then refinanced the amount with a multilateral at an interest rate of perhaps 3%.(insert Vice President Joe Biden comment about Obamacare here )
2. Elimination of the bond amortization which is supposed to start in 2019 would create a win-win situation Since Belize would have difficulty making such amortization payments anyway.
3.The GOB could sell "carbon stocks" to foreign governments of industrialized countries wishing
to comply with international efforts to reduce emissions of greenhouse gases
from deforestation and forest degradation (known as REDD or REDD+). As an example, Norway’s $1 billion USD REDD+ investment in Indonesia.
4.
The alternative approach would be to follow Ecuador’s example and
default on moral grounds and attacked the legitimacy of the debt.
Notes:
Why Belize "Creditors Committee" who owns over $300m of the $547m bond wants all investors to be treated equally.
1. Reconciliation between Prime Minister Barrow and Lord Michael Ashcroft is
notable because Ashcroft used to be a significant holder of Belize debt when holdings were made public during
the 2007 exchange; wonder if Ashcroft continues to hold large amounts of debt and if he is one of the
bondholders with whom the government wants to negotiate.
2
notices were sent through Clearstream to bondholders asking them to
voluntarily reveal their identities to the government of Belize
in late April
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