Belize’s creditors are betting the Central American country will improve its bond restructuring offer in order to maintain access to global debt markets. The government says it doesn’t need them.
Belize is offering bondholders 20 cents on the dollar in a debt restructuring, worse than what Argentina gave creditors following its 2001 default, according to Bank of Nova Scotia and Citigroup Inc.
Belize’s vow to restructure more than $500 million of dollar debt for the second time in five years has stoked the biggest bond decline in emerging markets. TCW Group Inc. is betting the rout has gone too far.