There are precedents for what Belize is trying to get done in terms of re-financing its commercial debt. The article below illustrates this.
It is important to note that the plan is to issue one new bond to replace the US$338 million in six series of existing bonds and the US$253 million in commercial loans, roughly $BZ1.2 billion total, with a single amortizing bond, preferably over twenty years.
It is improbable Belize (or any other country for that matter) would be able to float a bond that pays 2% interest.
There is much more very current information available on Belize's debt rearrangement efforts on the Central Bank of Belize website at:
http://www.centralbank.org.bz/dm_browse.asp?pid=128. It is obvious that many Belizeans do not understand the process, and as evinced by another posting on the subject on this list, there are those who prefer to view this and other matters through the prison of their political prism.
Panama Refinances Debt
As part of an ongoing liability management program, Panama sold $980 million in 20-year bond yielding 7.295%. Citgroup managed the transaction. The bond was meant to refinance three bond issues that the sovereign bought back in November 2005; a $449 million, 8.25% issue maturing in 2008; a $165 million, 9.625% issue maturing in 2011, and a $201 million, 10.75% deal due in 2020. The moves are part of a program to extend its maturities and lower its financing costs as the country's economic fundamentals improve.
Source: LatinFinance magazine, February 2006