The Check is Not in the Mail: G.O.B. Seeks Extension of Bond Payment

A coupon payment for Belize’s so-called “Super Bond” was due today, but instead of making that payment to its international creditors, the Government of Belize is now asking for an extension.  In a release posted to the Central Bank of Belize website on Wednesday, G.O.B. indicated it is seeking a “Consent Solicitation” from eligible owners of Belize’s U.S. Dollar Bonds due in 2034.  The government is attempting to extend the grace period for the current May twentieth coupon payment to September nineteenth.  The reasons given are the state of Belize’s economy, which has been acutely affected by the consequences of the COVID-19 pandemic.  The government is sticking to its position that it will follow a “Five-Year Homegrown Recovery Plan,” rather than adopt an I.M.F. program as some bondholders had indicated they would prefer earlier this month. Belize is now promising to pay each eligible holder that agrees to this delay a consent fee in an amount equal to U.S. fifty cents for each U.S. one thousand dollars on the principal amount of securities. It remains to be seen if any of the bondholders agree to this latest request.