Identifier
Created
Classification
Origin
07BELMOPAN121
2007-02-21 18:08:00
UNCLASSIFIED
Embassy Belmopan
Cable title:
BELIZE: SUCCESS OF SUPERBOND EXCHANGE OFFER DAMPENS RUMOR
how-toVZCZCXRO3542 RR RUEHGR DE RUEHBE #0121 0521808 ZNR UUUUU ZZH R 211808Z FEB 07 FM AMEMBASSY BELMOPAN TO RUEHC/SECSTATE WASHDC 0268 INFO RUEATRS/DEPT OF TREASURY WASHDC RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE RUCNCOM/EC CARICOM COLLECTIVE RUEHLO/AMEMBASSY LONDON 0016 RUEHME/AMEMBASSY MEXICO 0041
UNCLAS BELMOPAN 000121
SIPDIS
SIPDIS
STATE FOR WHA/CEN//JASON MACK
PASS TO EXIM//MICHELE WILKINS AND MICHELLE D. MILLER
TO USTR
TREASURY FOR WHA//FRANCISCO PARODI AND JEFFREY LEVINE
E.O. 12958: N/A
TAGS: EFIN ECON EAID PGOV PREL SOCI BH
SUBJECT: BELIZE: SUCCESS OF SUPERBOND EXCHANGE OFFER DAMPENS RUMOR
OF EARLY ELECTIONS
REF: (A) 2006 BELMOPAN 66
(B) 2006 BELMOPAN 91
(C) 2006 BELMOPAN 40
(D) 2006 BELMOPAN 44
UNCLAS BELMOPAN 000121
SIPDIS
SIPDIS
STATE FOR WHA/CEN//JASON MACK
PASS TO EXIM//MICHELE WILKINS AND MICHELLE D. MILLER
TO USTR
TREASURY FOR WHA//FRANCISCO PARODI AND JEFFREY LEVINE
E.O. 12958: N/A
TAGS: EFIN ECON EAID PGOV PREL SOCI BH
SUBJECT: BELIZE: SUCCESS OF SUPERBOND EXCHANGE OFFER DAMPENS RUMOR
OF EARLY ELECTIONS
REF: (A) 2006 BELMOPAN 66
(B) 2006 BELMOPAN 91
(C) 2006 BELMOPAN 40
(D) 2006 BELMOPAN 44
1. Summary: On January 31, the Government of Belize announced a USD
565 million bond exchange offer (ref A) that has given the
government relief from sovereign debt default and has dampened
rumors of early general elections. The new 2007/2008 budget is
expected on March 2 and will be the first test of the government's
ability to stay within the IMF-recommended overall budget deficit
level of 3 percent of GDP. End Summary.
2. On January 31, the Government of Belize officially announced
that "the holders of the country's public external commercial
indebtedness have overwhelmingly agreed to exchange their existing
claims against the country for new bonds to be issued by Belize
maturing 2029" (ref A). Holders of 97 percent of the debt have
accepted the exchange offer and will receive the new bonds on
February 20.
3. Government's fiscal year runs from April 1 to March 31 and the
new 2007/2008 budget is expected to be delivered March 2. When this
happens, the government must stay within the IMF-recommended overall
budget deficit level of 3 percent of GDP or risk losing substantial
loan guarantees. The government's commitments to the Caribbean
Development Bank and the Inter-American Development Bank to
implement serious fiscal and monetary reforms should get their first
test when the new budget is delivered.
DIETER
SIPDIS
SIPDIS
STATE FOR WHA/CEN//JASON MACK
PASS TO EXIM//MICHELE WILKINS AND MICHELLE D. MILLER
TO USTR
TREASURY FOR WHA//FRANCISCO PARODI AND JEFFREY LEVINE
E.O. 12958: N/A
TAGS: EFIN ECON EAID PGOV PREL SOCI BH
SUBJECT: BELIZE: SUCCESS OF SUPERBOND EXCHANGE OFFER DAMPENS RUMOR
OF EARLY ELECTIONS
REF: (A) 2006 BELMOPAN 66
(B) 2006 BELMOPAN 91
(C) 2006 BELMOPAN 40
(D) 2006 BELMOPAN 44
1. Summary: On January 31, the Government of Belize announced a USD
565 million bond exchange offer (ref A) that has given the
government relief from sovereign debt default and has dampened
rumors of early general elections. The new 2007/2008 budget is
expected on March 2 and will be the first test of the government's
ability to stay within the IMF-recommended overall budget deficit
level of 3 percent of GDP. End Summary.
2. On January 31, the Government of Belize officially announced
that "the holders of the country's public external commercial
indebtedness have overwhelmingly agreed to exchange their existing
claims against the country for new bonds to be issued by Belize
maturing 2029" (ref A). Holders of 97 percent of the debt have
accepted the exchange offer and will receive the new bonds on
February 20.
3. Government's fiscal year runs from April 1 to March 31 and the
new 2007/2008 budget is expected to be delivered March 2. When this
happens, the government must stay within the IMF-recommended overall
budget deficit level of 3 percent of GDP or risk losing substantial
loan guarantees. The government's commitments to the Caribbean
Development Bank and the Inter-American Development Bank to
implement serious fiscal and monetary reforms should get their first
test when the new budget is delivered.
DIETER