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Western Hemisphere > Belize

You are looking at 1 - 10 of 14 items for :

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Cover IMF Working Papers
External Private Financing and Domestic Revenue Mobilization: A Dilemma?
Hippolyte W. Balima
,
Deirdre Daly
, and
Mr. Boileau Loko
Domestic revenue mobilization (DRM) is essential for low-income and emerging economies to sustainably finance their development needs and has received increasing attention in recent years. Studies have centered on structural factors such as the size and the structure of the economy, and the quality of institutions, notably to account for weaknesses in revenue administrations. Nevertheless, DRM can take time and carry political costs. Raising more financing through donors or private investors may be an easier and more politically palatable way for countries to meet spending needs. Using an impact assessment methodology and panel regressions over a sample of 72 developing countries, we found no evidence that access to bond markets or external commercial loans undermines the countries’ efforts to collect tax revenue. On the contrary, we found that access to markets has a positive impact on domestic revenue mobilization. Plausible explanations are that private financing must be repaid, and strong macroeconomic fundamentals are key for maintaining market access. We have also found that macroeconomic stability and the strength of institutions do matter for domestic revenue mobilization.
Keywords:
Domestic revenue mobilization; Bond markets; external commercial debt.; WP; market access; access country; access unit; market discipline effect; market financing; external commercial debt; access group; Revenue mobilization; International bonds; Emerging and frontier financial markets; Bonds; Sub-Saharan Africa
Cover IMF Staff Country Reports
Belize: Technical Assistance Report—Cybersecurity, Regulation, Supervision, and Resilience
International Monetary Fund. Monetary and Capital Markets Department
Cybersecurity risk is embedded in the CBB’s supervisory framework, but additional enhancements are needed to formalize guidance and develop more intensive supervisory practices. Supervisory expectations on cybersecurity are presented in an informal guidance note, which should be formalized into regulation to ensure enforceability; and an IT/cybersecurity supervisory manual should be developed to promote effective and consistent practices. With its principle-based guidance note, the CBB highlights its priorities in strengthening the cybersecurity posture of Belizean financial institutions. The principles are an appropriate interpretation of international best practices on incident prevention, detection, response, and recovery measures, adapted to the cyber maturity of the Belizean financial institutions, and can be used as a foundation for the formalized guidelines. The manual could emphasize the review of cybersecurity strategies, policies, and responsibility specifications and should address obtaining assurance on the effectiveness of the financial institutions’ processes for cyber risk identification, assessment, and mitigation.
Keywords:
ISCR; CR; risk management; self-assessment guidance; cybersecurity governance; cybersecurity process; efficiency gain; cybersecurity resilience; cybersecurity regulation; incident reporting; guidance note; control environment; cybersecurity posture; incident management; cybersecurity innovation; cybersecurity guidance note; cybersecurity guideline; Cyber risk; Central bank bills; Operational risk; Internal audit; Securities; Global
Cover IMF Working Papers
Long-Term Returns in Distressed Sovereign Bond Markets: How Did Investors Fare?
Mr. Jochen R. Andritzky
and
Julian Schumacher
Sovereign debt restructurings are perceived as inflicting large losses to bondholders. However, many bonds feature high coupons and often exhibit strong post-crisis recoveries. To account for these aspects, we analyze the long-term returns of sovereign bonds during 32 crises since 1998, taking into account losses from bond exchanges as well as profits before and after such events. We show that the average excess return over risk-free rates in crises with debt restructuring is not significantly lower than the return on bonds in crises without restructuring. Returns differ considerably depending on the investment strategy: Investors who sell during crises fare much worse than buy-and-hold investors or investors entering the market upon signs of distress
Keywords:
WP; excess return; crisis episode; debt crisis; distress investor; net present value; public debt; sovereign risk; sovereign default; bond restructuring; period return; return index; investor type; long-term return; investment strategy; longer-term return; market value; returns in sovereign bond bond market; bond investor; buy-and-hold investor; Bonds; Sovereign bonds; Debt restructuring; Crisis resolution; Global
Cover IMF Working Papers
Belize's 2016-17 Sovereign Debt Restructuring - Third Time Lucky?
Mr. Tamon Asonuma
,
Mr. Michael G. Papaioannou
,
Eriko Togo
, and
Mr. Bert van Selm
This paper examines the causes, processes, and outcomes 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.
Keywords:
WP; debt; Belize; restructuring experience; Sovereign Debt; Sovereign Defaults; Sovereign Debt Restructurings; Serial Debt Restructurings; restructuring process; debt sustainability concern; NPV haircut; debt portfolio risk; IMF engagement; Belize bond price; restructuring approach; U.S. dollar; face value; coupon rate; amendment terms; debt restructuring process; Debt restructuring; Bonds; Sovereign debt restructuring; Fiscal consolidation; Caribbean
Cover IMF Staff Country Reports
Belize: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This paper discusses three important sectors of Belize economy: financial, sugar market, and energy. Belize’s banking system has continued to strengthen since the 2014 Article IV Consultation in June 2014. Despite recent improvements, some banks’ balance sheets are still weak and exposed to adverse macroeconomic developments. The sugar sector makes a very important contribution to Belize’s economy. The sector is estimated to account for about 4-5 percent of GDP, 9-10 percent of total exports, 8 percent of employment, and 5-6 percent of foreign exchange earnings. But the reform of EU sugar regime, scheduled to take full effect in 2017, will most likely cause a significant drop in the EU sugar price.
Keywords:
ISCR; CR; Belize; rate; Belize energy sector; biomass; sugar price; energy policy framework; electric power grid; Co-Generation Energy Limited; sugar sector; EU reform; Belize's energy efficiency; Agricultural commodities; Commercial banks; Credit bureaus; Loans; Nonperforming loans; Caribbean; Global; Central America; Europe
Cover IMF Working Papers
Sovereign Debt Restructurings in Belize: Achievements and Challenges Ahead
Mr. Tamon Asonuma
,
Gerardo Peraza
,
Kristine Vitola
, and
Mr. Takahiro Tsuda
This paper examines the causes, processes, and outcomes of the two Belize sovereign debt restructurings in 2006–07 and in 2012–13 that occurred outside of an IMF-supported program. It finds that the motivation for the two debt restructurings differed, as the former was driven by external liquidity concerns while the latter was motivated by a substantial increase in the coupon rates and future fiscal solvency concerns. Despite differential treatment between residents and non-residents, both 2006–07 and 2012–13 debt exchanges were executed through collaborative engagement, due in part to the existence of a broad-based creditor committee and the authorities’ effective communication strategy. However, while providing temporary liquidity relief, neither of the debt restructurings properly addressed long-term debt sustainability concerns. Going forward, the success of the 2012–13 debt restructuring will still depend on the country’s ability to strengthen fiscal efforts and public debt management framework.
Keywords:
WP; bond; Belize; deficit; exchange offer; External Debt; Inter-Creditor Equity; Sovereign Debt Restructuring; debt exchange; growth performance; step-up coupon; cash flow; Belize debt restructuring; market haircut; amortizing bond; debt exchange operation; market financing; debt sustainability concern; bond exchange; Debt restructuring; Bonds; Debt service; Global
Cover Policy Papers
Sovereign Debt Restructuring - Recent Developments and Implications for the Fund's Legal and Policy Framework
International Monetary Fund
his paper reviews the recent application of the Fund’s policies and practices on sovereign debt restructuring. Specifically, the paper: • recaps in a holistic manner the various policies and practices that underpin the Fund's legal and policy framework for sovereign debt restructuring, including on debt sustainability, market access, financing assurances, arrears, private sector involvement (PSI), official sector involvement (OSI), and the use of legal instruments; • reviews how this framework has been applied in the context of Fund-supported programs and highlights the issues that have emerged in light of recent experience with debt restructuring; and • describes recent initiatives in various fora aimed at promoting orderly sovereign debt restructuring, highlighting differences with the Fund’s existing framework. Based on this stocktaking, the paper identifies issues that could be considered in further depth in follow-up work by staff to assess whether the Fund’s framework for debt restructuring should be adapted: • first, debt restructurings have often been too little and too late, thus failing to re-establish debt sustainability and market access in a durable way. Overcoming these problems likely requires action on several fronts, including (i) increased rigor and transparency of debt sustainability and market access assessments, (ii) exploring ways to prevent the use of Fund resources to simply bail out private creditors, and (iii) measures to alleviate the costs associated with restructurings; • second, while creditor participation has been adequate in recent restructurings, the current contractual, market-based approach to debt restructuring is becoming less potent in overcoming collective action problems, especially in pre-default cases. In response, consideration could be given to making the contractual framework more effective, including through the introduction of more robust aggregation clauses into international sovereign bonds bearing in mind the inter-creditor equity issues that such an approach may raise. The Fund may also consider ways to condition use of its financing more tightly to the resolution of collective action problems; • third, the growing role and changing composition of official lending call for a clearer framework for official sector involvement, especially with regard to non-Paris Club creditors, for which the modality for securing program financing commitments could be tightened; and • fourth, although the collaborative, good-faith approach to resolving external private arrears embedded in the lending into arrears (LIA) policy remains the most promising way to regain market access post-default, a review of the effectiveness of the LIA policy is in order in light of recent experience and the increased complexity of the creditor base. Consideration could also be given to extending the LIA policy to official arrears.
Keywords:
PP; debt exchange; Fund policy; debt restructuring; debt sustainability; Fund staff; market access; Fund resource; Debt restructuring; Sovereign debt restructuring; Bonds; Debt sustainability; Global; West Africa; Africa; Caribbean
Cover Departmental Papers
The Caribbean: Enhancing Economic Integration
Mr. Sanjaya P Panth
,
Mr. Paul Cashin
, and
Mr. W. A Bauer
The Caribbean has made substantial progress in recent years in implementing economic reforms, both at the national and regional level. The Caribbean: Enhancing Economic Integration examines the product of the efforts made by Caribbean policymakers to strengthen regional cooperation and integration, which has yielded economic transformation and tighter integration with the global economy. This volume discusses regional financial integration as a means of deepening financial systems and raising regional growth; the relationship between tax incentives and investment, where harmonized regional action is important in seeking to overcome collective actions problems; and the consequences for the Caribbean of the erosion of trade preferences in key export markets. The book is based on empirical research carried out as part of the IMF's regional surveillance work in the Caribbean.
Keywords:
DPPP; DP; tax incentive; gross domestic product; income tax; country authorities; indirect tax; cost of capital; market price; free market; Agricultural commodities; Tax incentives; Foreign direct investment; Exports; Corporate income tax; Caribbean; Global; Central America; South America; West Africa; single market; tax rate; capital market
Cover IMF Staff Country Reports
Belize: 2008 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion by the Executive Director for Belize
International Monetary Fund
Belize’s near-term macroeconomic prospects have improved over the past year. The main risks to growth and financial stability arise from fiscal challenges and deterioration in the global outlook. Despite data limitations that constrain the analysis, the Belize dollar appears broadly in line with fundamentals, and the external accounts are not a threat to external stability. Progress in consolidating the public sector’s financial position needs to continue. A front-loaded fiscal adjustment is necessary to lower Belize’s debt ratios and regain market access.
Keywords:
ISCR; CR; Belize; management fund; GDP; holding; debt restructuring agreement; membership status; revenue department; GDP ratio; Oil; gas and mining taxes; Caribbean; Global
Cover IMF Staff Country Reports
Belize: Selected Issues
International Monetary Fund
Belize should reduce debt ratios to comfortable levels for smooth market access, and reduce liquidity risks by stabilizing debt service. Streamlined management of the oil fund should be considered. Fiscal measures should compensate for the loss of oil revenues in the budget and avoid new borrowing. This note explores alternative measures of reserves adequacy and concludes that a reserves target of three months of imports is a reasonable benchmark. Reforms enabling more effective liquidity management involve removing the ceilings and moving to market-based interest rates.
Keywords:
ISCR; CR; Belize; cost; debt; debt ratio; adequacy benchmark; GDP ratio; CBB profit; oil revenue; petroleum revenue management fund; reserves adequacy; Oil; gas and mining taxes; Imports; Government securities; Caribbean; Central America