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ORCID

Tamon Asonuma 0000-0002-2258-3249

Michael G. Papaioannou 0000-0003-2420-8319

Eriko Togo 0000-0001-6688-7650

Bert van Selm 0000-0002-8064-2833

Keywords

Sovereign Debt; Sovereign Defaults; Sovereign Debt Restructurings; Serial Debt Restructurings; Belize

Abstract

This paper examines the causes, process, and outcome of Belize’s 2016–17 sovereign debt restructuring – its third episode in last 10 years. As was the case in the earlier two restructurings, in 2006–07 and in 2012–13, the 2016–17 debt restructuring was executed through collaborative engagement with creditors outside an IMF-supported program. While providing liquidity relief and partially addressing long-term debt sustainability concerns, the restructuring will need to be underpinned by ambitious fiscal consolidation and growth-enhancing structural reforms to secure durable gains and avoid future debt distress situations.

Acknowledgments

This is an extended version of IMF Working Paper “Belize’s 2016–17 Sovereign Debt Restructuring–Third Time Lucky?” (WP 18/121). The views expressed in this paper are those of the authors and should not be attributed to the International Monetary Fund, its Executive Boards or its management. The authors would like to thank Mark J. Flanagan for valuable comments and Adriana Veras for helpful editorial support.

First Page

47

Last Page

67

Page Count

21

Received Date

30 November 2020

Revised Date

24 January 2021

Accept Date

2 February 2021

Online Available Date

18 February 2021

DOI

10.7172/2353-6845.jbfe.2020.2.4

JEL Code

F34; G15; H63

Publisher

University of Warsaw

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