ML-Implode News - Belize to Skip Payment If Lenders Don't Relent

Belize is insisting that creditors forgive 45% of what they are owed, or allow it to delay any debt payments for 15 years. Otherwise, it says it won't make its next payment of $23.1 million due on Monday. And if Belize and its bondholders don't reach a deal by Sept. 19, the country will default on its $543.8 million in outstanding debt--making it the first sovereign default since Greece forced creditors to take a 53.5% loss in March.
Creditors say Belize didn't tell them directly that it planned to skip a payment. The country simply posted its intention on the Central Bank of Belize's website.
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Belize may believe its hand was strengthened by Greece's drawn-out negotiations with international creditors earlier this year, Mr. Sterne said.

Now the "Greek effect" could inspire other countries to pursue restructurings on more favorable terms, he said. It is a risky strategy. Argentina defaulted in 2001, and its economy rebounded quickly, fueled by a commodities boom.

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Belize to Skip Payment If Lenders Don't Relent