| Super-bond Straps Budget |
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| Written by Administrator |
| Thursday, 04 February 2010 00:00 |
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Commenting on the effects that the Super-bond will be having on the economy, Prime Minister Dean Barrow noted that in terms of the annual interest payments for the super-bond it will be taking a huge bite from the country’s recurrent revenue. The PM says that this is a particular burden considering that recurrent revenues are falling. That he says creates a situation where the Super-bond bite is even more impactful as it produces an even greater squeeze on the economy and makes it more difficult for government to do the things that it would like to do. As it relates to the recurrent budget the Prime Minister points out that “It’s a terrible legacy! It’s a Damocles Sword”; however, he adds that it’s a fact of life and we have to deal with it.Mark Espat, instead of trying to crunch numbers he does not have available to him (oil numbers), would serve himself well to crunch these numbers and tell the Belizean people how much he as the architect of the Super-bond can do to make this, his legacy, any better. |
On February 20, the Government of Belize will be making a US$11,877,711.11 payment to service the Super-bond which it inherited from the PUP administration. That’s for servicing a 546,800,000 dollar debt at interest rates of 4.25%. If that were not bad news enough, come August 20 the payment will balloon to US$16,495,133.33 servicing the debt at 6% (see attached schedule for future payments.)