"Belize will launch an exchange offer at such time that there appears to be a general consensus around new terms, based of course, on Belize capacity to pay," Mark Espat, the government official in charge of debt rescheduling, told AFP.

"We believe that all parties recognize that a fair solution will only be reached through good faith and transparent negotiations," he added.

On August 20, Belize, the only English-speaking country in Central America, missed a $23.5 million bond payment and has until Wednesday to renegotiate its total $1.1 billion debt.

"The government is optimistic that a resolution will be attained. Even though Belize's government does not require access to external commercial credit, rendering an expiration of the grace period inconsequential, there is a steadfast commitment to a timely negotiated agreement of new debt repayment terms, based on the country's capacity to repay," Espat said.

"Our government is convinced that negotiations rather than a legal wrangle is the best path for resolution," he added.

The economy of this country of 300,000 people is mainly based on tourism, farming and fishing. Belize posted sluggish economic growth of two percent last year, down from 2.7 percent in 2010, according to the central bank.

Prime Minister Dean Barrow won re-election in March, vowing to restructure the debt bonds, which mature in 2029, after the coupon on the notes jumped to 8.5 percent from six percent as part of the agreement reached with creditors in 2007.

After failing to make the $23.5 million bond payment in August, Belize's Prime Minister Dean Barrow notably proposed to cut interest rates, currently standing at 8.5 percent.

The government's negotiating team, meanwhile, met last week with officials of the Inter-American Bank to weigh various options for possible assistance.