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Belize’s 2016–17 Sovereign Debt Restructuring – Third Time Lucky?

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Listed:
  • Tamon Asonuma

    (International Monetary Fund, U.S.A.)

  • Michael G. Papaioannou

    (International Monetary Fund, U.S.A.)

  • Eriko Togo

    (International Monetary Fund, U.S.A.)

  • Bert van Selm

    (International Monetary Fund, U.S.A.)

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.

Suggested Citation

  • Tamon Asonuma & Michael G. Papaioannou & Eriko Togo & Bert van Selm, 2020. "Belize’s 2016–17 Sovereign Debt Restructuring – Third Time Lucky?," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(14), pages 47-67, December.
    • Handle: RePEc:sgm:jbfeuw:v:2:y:2020:i:14:p:47-67
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    References listed on IDEAS

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    Cited by:

    1. Gatien Bon & Gong Cheng, 2021. "Understanding China's role in recent debt relief operations: A case study analysis," International Economics, CEPII research center, issue 166, pages 23-41.
    2. Mr. Serhan Cevik, 2019. "Back to the Future: Fiscal Rules for Regaining Sustainability," IMF Working Papers 2019/242, International Monetary Fund.
    3. Dmitry Vasilyev, 2019. "Reinvigorating Growth in Belize," IMF Working Papers 2019/024, International Monetary Fund.
    4. Gatien Bon & Gong Cheng, 2020. "China’s overseas Sovereign debt relief actions: What insights do recent cases provide?," EconomiX Working Papers 2020-22, University of Paris Nanterre, EconomiX.
    5. Gong Cheng, 2020. "The 2012 private sector involvement in Greece," Discussion Papers 11, European Stability Mechanism, revised 25 Oct 2021.

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    More about this item

    Keywords

    Sovereign Debt; Sovereign Defaults; Sovereign Debt Restructurings; Serial Debt Restructurings; Belize;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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