Belize rejects bondholders's proposals on superbond restructuring

BELIZE CITY Thu Nov 29, 2012 3:34pm EST

BELIZE CITY Nov 29 (Reuters) - Belize on Thursday rejected counter-proposals from bondholders on ways to restructure its so-called $550 million superbond, saying they were unsustainable.

In a statement released by the Belize central bank, the government said the bondholders' proposals were incompatible with its aim of putting the nation's public finances on a sustainable footing.

"The Government of Belize views the recently-submitted scenarios as unsustainable, and is disappointed that a counter-proposal of this nature has come five months after discussions with the committee began," the statement said.

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.

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.