Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By PGM Capital blog
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Belize is defaulting on Debt Payment, Who’s Next?

% of readers think this story is Fact. Add your two cents.


Dear PGM Capital Blog readers,
Belize, a Central American nation, today announced that they will miss a coupon payment on about US$544 million of bonds and is unlikely to pay creditors during a 30-day grace period that starts today:

The Central American nation, which owes investors about US$23 million today, can’t make the payment, Waight said in a phone interview from Belmopan City.

The government has been in talks with debt holders about a restructuring, its second since 2007.

“We simply do not have the capacity to make the payment,” Waight said. “We are hoping to engage with creditors as quickly as possible.”

Source

Belize Financial Secretary, said investors have had enough warning that a restructuring was coming and added the terms presented are necessary to close the country’s budget gap.

Belize has hired the law firm Cleary Gottlieb to advise the government on the restructuring, Waight said. Cleary Gottlieb was the law firm, which  assisted Argentina in its debt restructurings following the country’s default in 2001.

Credit rating Agency, Standard & Poor has a CCC+ rating on Belize, with negative outlook, while Moody’s has rated Belize debt as B3.

As you can see from below table these credit rating agencies consider Belize sovereign debt as Highly speculative with substancial risk.

Moody’s S&P Fitch
Long-term Short-term Long-term Short-term Long-term Short-term
Aaa P-1 AAA A-1+ AAA F1+ Prime
Aa1 AA+ AA+ High grade
Aa2 AA AA
Aa3 AA- AA-
A1 A+ A-1 A+ F1 Upper medium grade
A2 A A
A3 P-2 A- A-2 A- F2
Baa1 BBB+ BBB+ Lower medium grade
Baa2 P-3 BBB A-3 BBB F3
Baa3 BBB- BBB-
Ba1 Not prime BB+ B BB+ B Non-investment grade
speculative
Ba2 BB BB
Ba3 BB- BB-
B1 B+ B+ Highly speculative
B2 B B
B3 B- B-
Caa1 CCC+ C CCC C Substantial risks
Caa2 CCC Extremely speculative
Caa3 CCC- In default with little
prospect for recovery
Ca CC
C
C D / DDD / In default
/ DD
/

The big question most investors are asking themselves is who’s next to default?

The lessons that investors must learn from these is to never invest in any country or debt security which is “Non Investmentgrade“.

Secondly, investors must be aware that we are approaching the bottom of the current “Kondratieff Winter” and the “Exter’s Pyramid“.

History has proven that in these bottom, credit dries up, default (risk) increase and gold will excel.

Another question investors might be asking them selves is.

Will we also be approaching the end of the Fiat Money system?

Due to this we advise investors and the middle class to exchange their paper or fiat-money for Real Money: Gold, Silver, and other precious metals.

Before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities, Precious metals as well as the stocks of their producers can be very volatile and that sharp corrections may happen in the short term.

Yours Sincerely,

Eric Panneflek


Source:


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.