Thursday, June 21, 2012

BELIZE GOVERNMENT PLANS TO DEFAULT IN AUGUST WITH SUPERBOND INTERNATIONAL DEBT

BELIZE GOVERNMENT LAYING PLANS AND SUBSEQUENT FALLOUT, FROM DEFAULT OF SUPERBOND PAYMENT IN AUGUST.  THE DEBT OF BELIZE IS UNSUSTAINABLE AND UNLIKE GREECE, WE DON'T HAVE THE European Union. TO BAIL US OUT.

  The numbers have been around for two years.  But declining oil revenues, expected to become serious in two to three years, are expected to lop off, about 25% of the current available revenue to government this year.  We are past peak oil, and the exports of oil will decline fast from here on out, over the next five years.

  The Superbond debt totals are put about $1.3 billion.  Factor in repayment at $200 million Bz each, to the previous owners of BEL and BTL, the water and telecommunications giant in Belize.  THE NATIONAL DEBT OF BELIZE IS RUNNING AROUND ABOUT $1.5 BILLION USA.  We have a population of 300,000.  The numbers indicate we are going to lose between 1/3 rd and 1/2 of our current government revenues over the next three years. 

  If Belize is going to default on the SUPERBOND, it behooves us to do so, this AUGUST.  Pro-crastination will solve nothing and simply make the overall picture worse. Other government operations from GRANTS for infra-structure, are expected to continue and payments on loans from regional banking services to continue as usual.  With a default, we will be something of a temporary pariah in international commercial circles, but that is not expected to last more than three years.  When you buy HIGH RISK BONDS, you accept the risk, and none of the holders have more than a token small percentage of their portfolios in Belize Securities.  If they are smart they will write them off before the end of this fiscal year.  If they get traded over here within Belize, might even buy some of those bad bonds myself, at 3 cents on the dollar thereabouts.  Haven't been able to trade Belize Bonds because they are on the European Exchanges, notably LUXEMBURG.  Get them over here and we could develop a penny market trading in them, if the government would occasionally pay the odd interest payment.

2 comments:

Maria Mercedes said...

Hello, I thought I would pay you a visit.

Your posts on agriculture are highly informative.

Your posts on Belize's External Debt are not, and are even misleading.

Superbond outstanding: US$546.79 million.

The Super Bond is less than half of total external debt. The rest is multilateral debt.

Blogger said...

If you want your ex-girlfriend or ex-boyfriend to come crawling back to you on their knees (no matter why you broke up) you got to watch this video
right away...

(VIDEO) Get your ex back with TEXT messages?