Caribbean News Now!

By Cristal Romo
Caribbean News Now contributor

BELMOPAN, Belize -- Creditors are asking the government of Belize to justify its restructuring proposals in light of what they see as contradictory information released earlier this year and a December IMF report that did not express any concerns about debt sustainability, Reuters reported.

"In the absence of comprehensive and consistent information, we are relying on the IMF Article IV published last December," said a source close to the credit committee. "This report, which was issued in consultation with the Belize government, did not even raise a concern about debt sustainability, so the committee is understandably curious about what has changed."

Belize missed a US$23 million bond interest payment on August 20 and creditors are still waiting for a formal response to restructuring proposals. The government has until September 19, when the grace period ends. However, one senior portfolio manager was skeptical last week, saying the final offer could be nearer 20 cents on the dollar, Reuters said.

According to Reuters, the two sides appear to be far apart. The situation is exacerbated by approximately US$300m in additional liabilities in the form of compensation due to former shareholders of Belize's electricity and telecoms companies, which were nationalized between 2009 and 2011.

No settlement has yet been reached with these claimants, and the government wants to roll their claims into a wider debt restructuring.

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