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Belize Default Official

Belmopan:

The Government of Belize announced today that it is unable to make an August 20,  2012  coupon  payment  on  the  country’s  U.S.  Dollar  Step-up Bonds Due 2029.

Belize has already commenced discussions with the holders of this bond regarding a consensual restructuring of the instrument.

“The   Step-up Bond alone represents approximately one-half   of   Belize’s   total   recorded   public   indebtedness”,   explainedDean   Barrow,   Prime   Minister   of   Belize   and   Minister   of   Finance   and   Economic   Development.

“The  annual  interest  rate  on  this  bond  stepped  up  earlier  this  year  to  8.5%.    We  simply cannot afford this coupon payment, given the financing shortfalls and other challenges we face.  Our hope,  however,  is  that  we  can  move  quickly  toward  a  sensible  restructuring  of  the  instrument.”

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