Belize to default on $23m bond payment
Filed under: Investing
The announcement by Prime Minister Dean Barrow brings Belize a step closer to formal default on a total debt of 544 million US dollars (£346 million).
Mr Barrow said his government is unlikely to make the payment during the ensuing 30-day grace period because it simply does not have the money.
He told reporters the government expects to meet with creditors later this week.
The government has offered bondholders a harsh restructuring proposal which implies reductions in the amount owed, lower interest rates or extended repayment terms.
Belize is struggling with a heavy debt from infrastructure projects and recent nationalisation of companies.