In other news from Belmopan, Business senator, Mark Lizarraga weighed in on the rejection of the first proposal for a renegotiated super bond by the bondholder’s committee. He said the business community is closely following the matter:
Hon. Mark Lizarraga, Senator for the Business Community;
We are still questioning what motivation the bondholders have to renegotiate, why would they want to renegotiate really? Unless it was a better deal for them. We will watch this very closely and of course hoping that the Government can achieve some cash flow reprieve but as well some significance savings and we really don’t see the bondholders being motivated to move in that direction. Again, what is the motivation for them to renegotiate when they have an eleven percent penalty clause if we fail to meet with our obligations under the penalty bonds. We’ve been on the junk territory for a long while, a very long while and yields on those bonds are between fifteen and seventeen. The thing is that we have not kept our word, have we? I mean, we’ve had to renegotiate several times, we’ve said that the cash flow savings that we would receive would be put to good use and it hasn’t. So the bondholders are saying now, what credibility do you have really? I mean, you have to come to me with some sort of medium term strategy, they are not saying short term in other words needs to go beyond one administration but they want to see a medium term strategy to how you’re going to comprehensively look at our debt sustainability and we have yet to see that.