No Belize superbond creditor deal yet, talks ongoing-Cenbank

BELIZE CITY Tue Nov 20, 2012 9:28pm EST

BELIZE CITY Nov 20 (Reuters) - Belize's government is continuing talks with bondholders to restructure a $550 million superbond as a reprieve granted by the creditors will soon expire, the Central American country's central bank said on Tuesday.

In late September, Belize won a 60-day reprieve from bondholders after paying half of an overdue interest payment, delaying any potential legal action under the specter of a full-blown default. The reprieve will expire Dec. 1, a source close to the negotiations said.

"Discussions between the government and its bondholders are ongoing," the central bank said in a statement. "In fact, talks between the government and bondholders have intensified."

"We do not expect the expiry of the 60 days voluntary standstill offered by the (creditor) committee to have an effect on the substance or timing of ongoing discussions with bondholders," it added.

The central bank said it did not expect a partial guarantee or credit enhancement from the Inter-American Development Bank.

A source close to the negotiations confirmed talks were ongoing.

The Belize government has laid out three proposals for rescheduling its bond payments, shocking analysts with its suggestion that they take a haircut of up to 45 percent on their investment.

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