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Prime Minister Dean Barrow
"Belize has reached agreement in principle with its bond holders over the re-structuring if the super bond. This agreement is comprehensive, it is sustainable and it will provide well in excess of 150 million dollars in relief to Belize. this deed is an in principle one and the reason for characterizing it in that fashion is simply because a term sheet must now be prepared` reflecting what Mr. Mediratta and I and what in fact Belize and the bond holder creditor committee have agreed. Until that term sheet is prepared and the lawyers are going to begin work on that almost immediately - of course I imagine the Christmas holidays will intervene but until that term sheet is prepared and signed off on - I am not at liberty to tell you all the details of what we have agreed."

Those 150 million dollars in savings is 150 million US dollars. Our information suggests that is a very conservative estimate as the total savings - in cash flow terms - could be significantly more than that. The Prime Minister also confirmed that the new deal will include what is known as a principal haircut, like a discount - but he flatly refused to say how much at this point. Some suggest it could be in the range of 20% or more.

But that will be worked in the term sheet which should be finalized by the middle of next month. Today was just a sort of pre-Christmas treat. The Prime Minister explained that the breakthrough in negotiations came after the Speaker of the House Mike Peyrefitte put him directly in touch with the Co-Chair of the Creditors Committee, AJ Mediratta. The PM says he was hesitant at first - but ultimately took the bull by the horns:

Prime Minister Dean Barrow
"We agreed that since ultimately it was all on me if we failed, the people of this country would lay blame squarely at my feet - it was agreed that I should take the chance - take the punch and actually get involve face to face negotiations with Mr. Mediratta. So we went up to Miami one weekend and I did not lie; I merely said that I was going for a meeting as Mr. Vasquez pointed out on his news - it was an unspecified meeting and I am sure he figured out exactly what was happening but I did not lie. That meeting gave new impetus to the process. We came away from that meeting with oppositions still some distance apart but with a basis having been established that I thought represented a fair chance at narrowing the positions and at procuring ultimate success. Mr. Mediratta and I had several conversations - we went back and forth and continued to run all the numbers by Ambassador Espat and he in turn made certain to seek the concurrence of our financial advisors so that I could be certain that I was proceeding properly."

Mark Espat
"From here we have to tie down the term sheet, we have to ensure that we are ready for a launch as the Prime Minister said in January of the exchange offer and we hope to conclude sometime in late February, certainly before the end of the first quarter."

Prime Minister Dean Barrow
"As soon as the term sheet is ready the precise details will be released to you. The debt team will meet again with the social partners to discuss all those details that will in fact be revealed at that point."

And so while the formal launch is set for next month - the financial secretary had to play the part of Scrooge and throw a damper on things by emphasizing that Superbond savings are for deficit reduction, it is not new money:

Mark Espat
"The debt relief that we will be getting as part of what has been agreed to in principle between the Prime Minister and Mr. Mediratta and as a consequence between Belize and the creditor committee - will be material consequential significant savings compared to what we would have paid without this exercise. The debt relief is significant; it will provide I think material measurable relief and it will allow as the governor and financial secretary said it will allow a period for macroeconomic consolidation and expansion."

Joe Waight, Financial Secretary
"it is truly a momentous occasion but I would like at ad a word of caution that the Prime Minister echo - this really helps us to close a fiscal gap - it does not in any way gives us fresh money or new money. The work of fiscal consolidation has to continue, the budget still has to be very tight - they maybe a sliver of resources that we can re-direct but really this puts us back in a position of having to choose every dollar how to spend it rather than to worry about every dollar we do not have. This is a deficit reduction exercise, it has not and will not immediate yield surplus funds to spend."

The effort to renegotiate the Superbond started in March right after the general election. The formal negotiations started in August when government missed a Superbond payment. The completion of negotiations - with good terms for Belize in four months is considered quite quick.

But the opposition is not impressed. The Secretary General issued a statement today saying it welcomes the Government's announcement…but it remains unclear as to whether this is an agreement between the Prime Minister and Mr. A J Mediratta or an agreement between the GOB and the Bondholders Committee. We note that The PM did say Mediratta spoke on behalf of the Committee.