Chile Forum

Belize , yet another ex pat ex heaven is in the news. Having effectively defaulted on its debt and zero ability to pay/refi it Belize is demanding 45% haircut for bondholders or similar restructuring plan. It doesnt seem to be eagerly accepted by the debtholders so I can see Belize falling into the trap of perpetual debt servitude with government takeover of everything in the country, steep taxes and severe austerity imposed by the debtowners (aka slave owners) of Belize. Since such events seem inevitable at this point I see mass exodus of now ex. ex. expats from Belize to the greener pastures of other places such as Chile!

Unless a major US or EU bank is at risk, no one will care about the default. If a TBTF starts crying, Belize will get a bailout loan, probably using some rehypothecated, gringo-owned real estate as collateral.

The same corrupt government that sent 60 police from the "Gang Suppression Unit" to handcuff John McAfee and staff for hours, while raiding his home to punish him for refusing a shakedown donation to a local politician?

re: Belize. What little I know about it, Lot of English spoken there, it's tropical and generally sweaty hot, server farm country for off-shore gambling websites, tax-haven (or former tax-haven now?). In general I don't see Chile being a good fit for expats who previously chose Belize. Sure, I guess a few would check out Chilito but I would think other destinations would fit their requirements better. i.e. Costa Rica, Panama, etc. Even Nicarauga.

Would also depend if they can get their wealth out without a huge discount and get it into more expensive Chile. Three flags theory continues to hold it's merit. And I mean this as a warning also for those in Chile who have made it an all or nothing proposition.