(Trinidad Guardian) Debt-burdened Caribbean nation Belize has won a 60-day reprieve from bondholders after paying a portion of its overdue US$23m debt interest. It paid US$11.7m to creditors, earning it some breathing space and reducing the likelihood of a full-blown default, the BBC reported yesterday. Belize had been due to pay the US$23m bond interest payment, or coupon, on August 20.
A 30-day grace period to “cure” the missed payment ran out late on Wednesday, September 19. After the grace period ran out only 25 per cent of bondholders could have voted to accelerate the repayment of the entire bond, which was supposed to mature in 2029, according to a Financial Times report.
In return for Belize making a partial payment, the creditors’ committee—chaired by AJ Mediratta, a partner of US hedge fund Greylock Capital Management—agreed not to seek “legal remedies” for a further 60 days to allow restructuring talks to continue. Negotiations are continuing.