Which Country Goes Bankrupt Next? (Hint: It’s Not Who You Think) [dailyfinance]
August 24, 2012 Leave a comment
When Greece defaulted on its government bonds in March, it was the first country of any size to take such a step since the great Argentine default of 2002. It won’t be the last.
Now, quibblers contend that Greece didn’t really default on its debt. Instead, the country presented its creditors with a take-it-or-leave-it offer: Write off all but 46.5% of the debt, or watch Greece declare bankruptcy and lose it all. (They took the 46.5%).
But that’s still a technical default — and that’s now what Belize is proposing to do, too.
Default by Facebook
According to The Wall Street Journal, Belize is telling its creditors that unless they write off 45% of its debt, or give it a 15-year holiday from debt payments, the country will default on the whole shebang.
That’s $543.8 million in bonds — poof! — gone.