Bonds May Save Reefs

Belize is well-known for its coral reefs and scuba diving, including the Great Blue Hole, which Jacques Cousteau called one the five best dive sites in the world. Now, Belize may help save its coral reefs through bonds. Belize has a "superbond" outstanding, which is a combination of previous bond restructurings. The par value of $572 billion is part of Belize's 133 percent debt-to-GDP ratio, which the International Monetary Fund has stated is unsustainable. Belize is engaged in talks with bondholders to exchange $550 for every $1,000 in par value. Under the terms of the agreement, Belize will invest a significant amount in support of marine conservation aimed at protecting its reefs. Currently, 50 percent of bondholders have agreed to the terms, although 75 percent of bondholder support is necessary for the proposal to pass.