The Committee also said GOB’s consent solicitation was premature since any agreement requires consent from holders of at least 75 percent of the bonds. The Committee has also further advised bondholders to refrain from consenting to the terms of the consent solicitation.
Bondholders say any potential debt relief must be part a medium-term solution requiring a strong and credible program of fiscal and structural adjustment to promote economic growth and reduce crisis risk. The Committee also said there needs to be reasonable mechanisms to assure that the adjustment program will be delivered.
According to the Committee, it has not seen the details of GOB’s proposed economic adjustment program. It added that based on the publicly available information, it does not think GOB’s plan is likely to reduce future risks to debt sustainability or to the stability of the country’s currency peg. As a result, the Committee is urging GOB to seek technical assistance in further developing a comprehensive home-grown adjustment plan that can ultimately be endorsed by Belize’s multilateral partners. This is likely the bondholders’ request for Belize to enter a program of the International Monetary Fund (IMF).
The Committee said it has requested additional information from GOB regarding its intended plan and will complete its analysis then.
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