BELMOPAN, Belize (CMC) – The Belize Government says it intends to begin discussions with holders of Belize’s US dollar bonds due 2038 as a result of the serious economic and financial challenges currently facing the country.

A Government statement said that these challenges include low growth, rising fiscal deficits, a deteriorating balance of payments position, and declining sovereign debt indicators.

The statement said that the country’s challenges have been exacerbated by slow global growth, US dollar strength, Hurricane Earl, a substantial decline in key commodity production and prices, and the higher than anticipated arbitration awards.

Belize’s 2038 bonds were issued in 2013 and are the only government debt securities outstanding in the international capital markets.

“For a variety of reasons, Belize’s economy has significantly underperformed in comparison with the projections used at the time in setting the terms of the 2038 bonds,” the statement noted.

It said that Belize intends to meet with individual bondholders or a committee representing the bondholders before the end of November to discuss measures necessary to place the 2038 bonds on a fully sustainable basis.

The Belize Government has retained Citigroup Global Markets Inc as its structuring advisor and Cleary Gottlieb Steen & Hamilton LLP as its legal counsel in this process.

“Any amendments to the terms of the instruments that may be agreed with holders of the bonds will need to be implemented before the authorities submit their 2017 fiscal year budget to the Belize Parliament,” said Joseph Waight, financial secretary of Belize.

“The budget is finalised in February of each year and then submitted for parliamentary consideration, hence the need for an expedited creditor consultation process,” he added.