Belize has reached an agreement in principle with creditors to restructure about half of its unpaid debt after "long and arduous" talks, allowing the country to avoid default, Prime Minister Dean Barrow said on Friday.
Barrow told a press conference that he would release details of the restructuring of the $544 million bond at a later date.
"The agreement is comprehensive and it is sustainable," he said.
Mark Espat, leader of Belize's negotiating team on the debt restructuring, explained that details of the deal could not be made public until they were explained to all of Belize's creditors.
Belize missed an August 20, 2012, US$23 million coupon payment on the country’s US dollar Step-Up Bonds due 2029, although in September it made an $11.7 million interest payment, which was only about half of what it owed but enough to avoid full-blown default.
The Step-Up Bond represents approximately one-half of Belize’s total recorded public indebtedness, but he bond is just one issue that the country is facing. Belize is facing tough financial times and balancing the budget, finding capital to grow the economy are just some of headaches that the government faces in 2013.