IDB punks out on Support for Superbond Restructuring Print E-mail
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Thursday, 22 November 2012 00:00

IDB’s Luis Alberto MorenoPrime Minister of Belize, Hon. Dean Barrow has expressed his disgust at the decision of the President of the Inter American Development Bank, Luis Alberto Moreno, not to support a partial guarantee of Belize’s debt restructuring. Belize has been engaged in exhaustive negotiations with the multilateral  body for the guarantee but that has now fallen though. The Prime Minister is telling the nation that as a result of pressure put on by the U.S Treasury Department, IDB has stated that Belize will have to go to the International Monetary Fund for the guarantee.

P.M. Barrow says that the decision to grant the guarantee stood squarely on the IDB and pursued it as such, even going to the board of directors since the IDB is not a branch of the U.S. Treasury. Now, the Prime Minister is none too pleased with Moreno’s decision and he explained that he has told the IDB president as much. “He has to bear the brunt of Belize’s ire,” remarked the P.M. And while there is where the negotiations stand, Prime Mnister Barrow is not disassociating himself from the lending institution since we “must be mature in the relationship with IDB” and that relations can and should continue.

Even with the move to have the IDB partially guaranteeing the debt restructuring out the door, negotiations still continue for better terms with the bondholders, who are expected to give a counter proposal on the restructuring of the debt within the next few days.