Belize defaulted bond prices climbed as the government and creditors near agreement on a restructuring.
The price on Belize’s 8.5 percent dollar bonds maturing in 2029 gained 2.7 percent to 55.99 cents on the dollar at 3:47 p.m. New York time. The bonds have climbed from a low of 30.5 cents on Aug. 15 after the government missed a $23 million coupon payment.
The restructuring may value the defaulted debt at as much as 70 cents on the dollar, more than double what the government initially put forward in a proposal last year, Carl Ross, a managing director at Oppenheimer & Co. in New York, said in a report today.
“The end result is likely to be significantly more generous to bondholders than the initial offer,” Ross wrote, adding that his analysis was based on “incomplete information.”
Prime Minister Dean Barrow said Jan. 21 that an accord with bondholders would be announced within two weeks and save the Central American nation formerly known as British Honduras $33 million this year. Barrow originally said a deal over the country’s $544 million “superbond” would be announced by mid-January.