Belize unable to make coupon payment; in talks to restructure bonds

By Caroline Salls

Pittsburgh, Aug. 15 - The Government of Belize will not be able to make the Aug. 20 coupon payment on the country's U.S. dollar step-up bonds due 2029, according to a news release.

The government said it is in discussions with the bondholders regarding a consensual restructuring of the bonds.

"The step-up bond alone represents approximately one-half of Belize's total recorded public indebtedness," Belize prime minister and minister of finance and economic development Dean Barrow said in the release.

"The annual interest rate on this bond stepped up earlier this year to 8.5%. We simply cannot afford this coupon payment given the financing shortfalls and other challenges we face.

"Our hope, however, is that we can move quickly toward a sensible restructuring of the instrument," Barrow said.

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