Belize's 2016-17 Sovereign Debt Restructuring - Third Time Lucky?
IMF Working Papers, May 22, 2018
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- Belize's 2016-17 Sovereign Debt Restructuring - Third Time Lucky?
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Bibliographic details
- Authors: Tamon Asonuma, Michael G. Papaioannou, Eriko Togo, Bert van Selm
- Published: May 22, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484357217.001
Overview
- Examines the causes, processes, and outcomes of Belize’s 2016–17 sovereign debt restructuring—its third episode in last 10 years.
- The 2016–17 restructuring was executed through collaborative engagement with creditors outside an IMF-supported program, as were earlier restructurings in 2006–07 and in 2012–13.
- The restructuring provided liquidity relief and partially addressed long-term debt sustainability concerns, but durable gains require further measures.
Key findings
- The 2016–17 restructuring delivered liquidity relief.
- The restructuring only partially addressed long-term debt sustainability concerns.
- The episode is the third sovereign debt restructuring for Belize in the last 10 years, following restructurings in 2006–07 and in 2012–13.
- Execution was through collaborative engagement with creditors outside an IMF-supported program.
Process and context
- Restructuring approach mirrored prior serial restructurings for Belize (2006–07 and 2012–13).
- Engagement was collaborative with creditors and conducted outside an IMF-supported program framework.
Policy implications and recommendations
- Ambitious fiscal consolidation is needed to underpin the restructuring and secure durable gains.
- Growth-enhancing structural reforms are necessary alongside fiscal consolidation to ensure long-term debt sustainability.
Subjects and keywords (as provided)
- Subjects: Asset and liability management, Bonds, Debt restructuring, Financial institutions, Fiscal consolidation, Fiscal policy, Public debt, Sovereign debt restructuring
- Keywords: amendment terms, Belize, Belize bond price, Bonds, Caribbean, coupon rate, debt, debt portfolio risk, Debt restructuring, debt restructuring process, debt sustainability concern, face value, Fiscal consolidation, IMF engagement, NPV haircut, restructuring approach, restructuring experience, restructuring process, Serial Debt Restructurings, Sovereign Debt, Sovereign debt restructuring, Sovereign Debt Restructurings, Sovereign Defaults, U.S. dollar, WP
IMF Working Paper No. 2018/121 by Tamon Asonuma, Michael G. Papaioannou, Eriko Togo, and Bert van Selm, May 22, 2018.
Content in this bundle
- Belize’s 2016–17 Sovereign Debt Restructuring–Third Time Lucky?, WP/18/121, May 2018