Last night, Prime Minister Dean Barrow and his negotiating team were all over the news talking about their Superbond success. After four months of negotiation, PM Barrow says they've gotten a deal which will ensure Belize significant savings on interest payments - 36 million dollars in the next two years alone - and the deferral of payments on the principal until 2030. They called it a great deal, but today the leader of the opposition held a press briefing to say that Barrow and his team are living in an alternate reality. He says that instead of saving money, this renegotiation will end up costing the government:...
Hon. John Briceno, Leader of the Opposition
"There had been no savings or reduction or haircut from the principal. Under the UDP superbond 2.0, you would have paid out 410 million US dollars in interest payments. Under the UDP superbond 3.0, the payments are 403 million dollars. So pretty much the government has saved 7 million dollars."
"When we look at the expenses for the negotiations so far as I mentioned it was 0.25% consent fee to the bond holders, which works out to 1.3 million dollars US. The credit committee legal and advisory fees, that is for the bond holders, is already at 2.785 million dollars. So the Prime Minister has already agreed to pay out 4.085 million."
"So, in effect to renegotiate the UDP superbond 3.0, its costing us 8.58 million dollars US and if you are only saving 7 million dollars based on their calculations, based on their interest and their numbers from the government, we actually are in the hole. There is a potential of 1.5 million dollars that we are going to lose under this renegotiation. Pretty much h the bond holders say 'we don't believe you Prime Minister.'"
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