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The IMF praises Belize’s economic recovery

By on July 17, 2013
IMF Report

IMF Report

The Washington-based International Monetary Fund (IMF) is giving the government of Prime Minister Dean Barrow good marks for the country’s economic recovery.  According to an IMF report released on Tuesday, the completion of the exchange of the “super bond” for new United States denominated bonds has brought “substantial cash-flow relief” to Belize. A report on the IMF assessment by the Caribbean Media Corporation (CMC) notes that … “the IMF, which recently concluded a review of the country’s economy, said that the new bonds, which will expire in 2038, has resulted in a cash flow of US$130 million over the next five years. Last December, the Dean Barrow government said it had reached an agreement with its creditors on restructuring the country’s US$544 foreign debt, also known as the super bond. Prime Minister Barrow described the agreement as “comprehensive” adding “it is sustainable, and it will provide well in excess of US$150 million in relief to Belize”. Last year, bondholders had rejected an offer from the Caribbean Community (CARICOM) country on restructuring the debt and said they had hired lawyers after the expiry of a reprieve on legal action. Belize, which said it could not afford to meet rising interest payments on the bond, shocked investors with an earlier suggestion that they take a haircut of up to 45 per cent. The IMF said that the debt restructuring took place against prolonged legal disputes over the nationalization of two utility companies, Belize Telemedia Limited (BTL) and Belize Electricity Limited (BEL) and that no agreement has been reached yet over compensation payments…”

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