Belize can’t meet payment to external creditors

A senior government official says Belize is seeking to engage creditors “as quickly as possible” and that the Caribbean Community (CARICOM) country is definitely not in a position to meet its payments on its external debt during a 30-day grace period.

“We simply do not have the capacity to make the payment. We are hoping to engage with creditors as quickly as possible,” said Finance Secretary Joseph Waight.

Prime Minister Dean Barrow, who won re-election in March, said a restructuring was needed after the coupon on the country’s so- called super bond climbed to 8.5 per cent this year from six per cent as part of an accord reached with investors in 2007.

Barrow projected that Belize’s fiscal deficit will climb to 2.5 per cent of gross domestic product this year from 1.1 per cent after growth in the US$1.4 billion economy slowed and the government took over the telecommunications and electricity distribution companies.

CMC