Belize’s superbond yield rose to 10 percent

Bloomberg has announced that Belize’s superbond yield rose by 56 points to 10 percent yesterday afternoon as voters were deciding who would be the next government of Belize. Bonds had been consistently falling in the last two years and the rally is the highest since the security was offered in 2013 as part of the $544 million debt restructuring. According to JPMorgan Chase & Co. Belize’s debt has returned 11.7 percent so far this year, the third highest in Latin America, led only by Venezuela and Argentina. The article also quoted from the International Monetary vlcsnap-2015-11-05-20h32m46s142Fund’s July report stating that QUOTE

 “public debt could rise “significantly” in the short to medium-term and that lower commodity prices and changes to the Venezuelan-led Petrocaribe oil-financing program pose risks to Belize’s economy.” 

The country’s gross domestic product shrank 1.6 percent year-on-year in the second quarter and the IMF said it expects growth to fluctuate around 2.5 percent annually.

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