Belize To Give Bondholders 20 cents On The Dollar
Belize is offering bondholders 20 cents on the dollar in a debt
restructuring, worse than what Argentina gave creditors following its
2001 default, according to Bank of Nova Scotia and Citigroup Inc.
Belize, wedged between Mexico and Guatemala on the Yucatan Peninsula,
relies on foreign capital to finance its current account deficit.
Argentina has been shut out of the international bond market since its
default, as has Ecuador, which stopped payments on its US$3.2-billion
debt in 2008.
Belize`s government is determined to impose bigger losses on
creditors because Barrow wants to court public support by blaming
foreign investors for the country`s economic woes, according to Morten
Bugge, chief investment officer at Kolding, Denmark-based Global
Evolution AS, which oversees US$1-billion.
`There might be a little bit of improvement but not to the extent
that the 35 cents on the dollar is justified as it is trading right
now,` said Bugge, who sold his Belize bond holdings over the past month,
in a telephone interview. `They need to treat investors in a more
friendly manner, but I very much doubt this is going to happen.`
http://business.financialpost.com/2012/08/21/belize-offering-bondholders-20%C2%A2-on-dollar-in-worse-than-argentina-debt-offer/
