In a significant economic development, Belize’s government has announced a hydro deal that will temporarily increase the nation’s debt-to-GDP ratio by 4%. Prime Minister John Briceño addressed the public today, emphasizing that this move is part of a broader recovery plan aimed at stabilizing the economy. To finance the deal, the government will issue treasury notes, leveraging domestic resources rather than foreign borrowing. The Central Bank is tasked with securing $122 million in foreign exchange to facilitate the transaction. The Prime Minister assured citizens that the government plans to divest shares in hydro plants to offset costs, aiming to break even or even achieve a profit. This strategy involves selling shares to local institutional investors, including credit unions and insurance companies. While the immediate impact on public debt is marginal, the long-term success of this plan hinges on market conditions and investor confidence. The government remains optimistic, projecting that the sale of these shares will exceed their current purchase price of $1.50 per share. However, questions linger about potential risks, such as drought, tariff shocks, or shifts in investor appetite, and whether the government has contingency plans in place.