7 News Belize

PM Barrow On Bond Talks
posted (October 2, 2012)
Prime Minister Dean Barrow and most of the Debt Restructuring Team returned from Washington DC today.

As we reported last week, the PM led a delegation to high level meetings with Executives at the IDB and IMF. Our reports were that the PM was going to lend his influence to try to swing support for a partial IDB guarantee of the debt re-structuring.

But today, upon his return the PM was far more circumspect in his remarks about the outcome of the meeting:..

Hon. Dean Barrow, Prime Minister
"The idea was to brief them on how the restructuring process is going and to discuss with them the roles that both institutions can play particularly in a post restructuring scenario. We clearly will need technical assistance, we will need project funding, we will need all the other resources that these international financial institutions can provide as we seek after the restructuring to maintain debt sustainability to maintain fiscal viability. That was what the trip was about. We had very useful discussions at the two institutions and I thought personally that it was in fact a productive journey."

Daniel Ortiz
"The information coming to us is that your trip was to seek a partial guarantee on the bond restructuring."

Hon. Dean Barrow, Prime Minister
"The request that the IDB look at a partial guarantee, that is limited to the IDB, has been on the table almost from the start of this process. I want to stress that that's not the only role that we see the IDB playing - in so far as that its concern the process is ongoing. Again it's not something that can be very quickly rap-up. There are all these internal protocols that the bank to be followed. I think we can indicate that certainly in so far as the technical preparation of this instrument, of this proposed instrument of the partial guarantee is concern those are proceeding apace at the IDB."

Daniel Ortiz
"Are these two institutions - how do they feel about the bond restructuring process as it is currently at the moment?"

Hon. Dean Barrow, Prime Minister
"Certainly the IMF will not comment on the negotiations between Belize and the bond holders nor will the IDB for that matter. I think both institutions though recognize that debt sustainability is in fact part of at this moment the fundamental economic and national interest of the country. Both institutions having done their assessments on a continuing basis of Belize macro-economic situation are aware that there is not just a need but a requirement for debt restructuring but there is no way they are going to comment on or even inquire too closely into the details of the negotiations that are taking place between Belize and the bond holders."

The Prime Minister and his team met with President Moreno of the IDB and the second in charge of the Western Hemisphere Department for the IMF.

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