Belize Dollar Bonds Gain, Erasing Earlier Losses on Elections

Belize’s dollar bonds gained, erasing earlier losses fueled by speculation a victory for the ruling party in parliamentary elections today could lead it to carry out a debt restructuring.

Yields on the country’s $544 million of bonds due 2029 fell 13 basis points to 18.98 percent after rising 12 basis points earlier, according to data compiled by Bloomberg.

Yields are up from 17.35 on Feb. 6, the day Standard & Poor’s carried out the first of two rating cuts on the Central American country that has left it at CCC-, or three levels above default. S&P said the incumbent United Democratic Party’s debt restructuring talks have turned from “rhetoric to a promise.” Yields touched a record 24.62 percent on Feb. 10.

The government is deciding whether it needs to restructure the dollar bonds, Financial Secretary Joseph Waight said in a Feb. 16 telephone interview. Phone calls to his office went unanswered today.

To contact the reporter on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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