US Supreme Court rules that Belize needs to pay up US $50 million in arbitration costs

By BBN Staff:As Belize continues to negotiate with bondholders to restructure the 2038 Bonds, the country’s already fragile economy has taken another crucial blow as US Supreme Court, yesterday, denied the government’s request for a write of certiorari in two pending arbitration settlements, namely: GOB vs. Belize Social Development Ltd., and GOB vs. BCB Holdings Ltd. et al.

The request for writ of certiorari was a last ditch attempt by GOB to further delay the pending arbitration costs which total some US $50 million. GOB’s chance of success in requesting certiorari was slim to none.

With the US Supreme Court judgment Caribbean Investment Holdings Ltd. and the Belize Bank, both subsidiaries of the so-called “Ashcroft Alliance” are now able to seek enforcement for the collection of the arbitration awards. If Belize is not able to make the payment, a discovery order or Belizean assets outside the country may be requested.

GOB has yet to comment on the matter but the decision certainly makes an already desperate situation even worse. Sources have indicated to BBN that the additional arbitration costs may need to be factored into the current Superbond restructuring.