Belize creditors support coupon capitalisation but debt worries linger

Belize, restructuring, default, coupon, deferral, LatAm, Central America, 575
By Oliver West
22 Jul 2020

A group of institutional investors owning Belize’s $526.5m of 2034 bonds said on Thursday that they would support an effort by the government to capitalise the next three coupon payments due on the bond. But some analysts say payment delays are unlikely to cure the country’s debt woes.

On July 17, Belize launched a consent solicitation asking creditor permission to capitalise coupon payments due on August 20 and November 20 this year, and on February 20, 2021. The consent applies to the government’s 4.9375% 2034s, the result of a 2017 restructuring and Belize’s only international bond.

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