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  • Speaker Of The House Signs MOU With FOPREL And SICA

    Friday, 07 September 2018 02:44
  • New International Flight Headed To Belize

    Friday, 07 September 2018 02:46
  • 224 Farmers Graduate From Farmers Field School

    Friday, 07 September 2018 03:09

no-pictureAn investor service reports that falling oil output and a weakening fiscal account in Belize may hurt growth and cause losses to bondholders two and a half years after it defaulted on about $550 million of bonds, according to an article on the Bloomberg Business website.

The report goes on to say that quote, “oil production in Belize declined twenty percent in January through August 2014 from a year earlier and will fall to less than 500,000 barrels this year after declining 23 percent in 2013 meaning that the country’s primary surplus, or budget balance before interest payments, will shift to a deficit in 2015,” end of quote.

What this translates into, according to the report, is that the risk of losses to bondholders remains considerable especially since the country may run out of oil by 2017. “Debt sustainability is fragile. There are downside risks to fiscal performance over the next 2-3 years,” it added.

The investor service, Moody’s Investor Service, reports that quote, “the yield on the country’s 2038 bonds was unchanged at 9.19 percent as of 12:52 p.m. New York time. The price has risen to 73.14 cents from about 68 cents a year earlier. Moody’s rates the country Caa2, eight levels below investment grade and in the same category as Cuba,” end of quote. According to Bloomberg, the Ministry of Finance didn’t respond immediately to requests for comments on the investor service report.

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