Jaraa'idJaraa'id
Notification Show More
Latest News
Mark Selby withstands Ryan Day charge to set up clash with Shaun Murphy in semi-finals of Tour Championship
Sports
Trump can still run for president in 2024 after being indicted
United States
South Africa surprises with bigger rate hike than forecast
Africa
UK strikes agreement to join Asia-Pacific trade bloc
Business
Rafael Nadal eyes injury comeback in time to bid for 15th Roland-Garros title – ‘I’ll try to be competitive’
Sports
Aa
  • Home
  • Local News
  • Africa
  • United States
  • Europe
  • Asia
  • Sports
  • Videos
  • Live Score
  • More
    • Business
    • Market Data
      • Stocks
      • Commodities
      • Cryptocurrency
      • Forex
    • Weather
Reading: Sri Lanka’s IMF deal edges closer as China backs debt restructure
Share
Aa
Jaraa'idJaraa'id
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Business
  • Sports
  • Videos
Search
  • Home
  • Local News
  • Videos
  • World
    • Africa
    • United States
    • Europe
    • Asia
  • Market Data
    • Stocks
    • Commodities
    • Cryptocurrency
    • Forex
  • More
    • Sports
    • Business
    • Weather
    • Live Score
Have an existing account? Sign In
Follow US
Jaraa'id > Business > Sri Lanka’s IMF deal edges closer as China backs debt restructure
Business

Sri Lanka’s IMF deal edges closer as China backs debt restructure

News Room
Last updated: 2023/03/07 at 3:57 PM
News Room Published March 7, 2023
Share
SHARE

China has agreed to support Sri Lanka’s debt restructuring in a crucial step towards securing a $2.9bn IMF rescue package and pulling the country out of an economic crisis.

Confirming Beijing’s move on Tuesday, the fund’s Asia-Pacific director Krishna Srinivasan said it “paves the way” for the IMF board to consider finalising the assistance programme at a meeting on March 20.

The IMF package has been pending for months as Sri Lanka sought to convince its creditors to agree a plan to restructure the bankrupt country’s foreign debts, a precondition for unlocking the funds.

“Sri Lanka has now received financing assurances from all major bilateral creditors,” Srinivasan said. China’s agreement follows similar commitments from creditors including India and Japan in January.

Sri Lanka’s president Ranil Wickremesinghe told parliament earlier on Tuesday that his government had received a letter of support from China’s Eximbank.

“Our part of the obligation is now complete and we hope the IMF will do their duty,” Wickremesinghe said, adding that the IMF bailout would unlock more financing from the World Bank and Asian Development Bank.

Srinivasan said the IMF package would “support the authorities’ programme of ambitious reforms, that [the country has] already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth”.

Eximbank directed requests for comment to past statements from China’s foreign ministry. Beijing had previously offered a two-year moratorium on debt and interest repayments from Sri Lanka, a condition that officials said the IMF did not endorse.

Policymakers have been closely watching Sri Lanka’s effort to secure approval from Beijing, whose importance as a global lender has surged over the past decade.

Sri Lanka last year became the first Asia-Pacific country to default in two decades, with low foreign currency reserves leading to severe shortages of vital imports such as food, fuel and medicine.

The crisis has turned Sri Lanka into a cautionary tale of economic mismanagement and the dangers that the shocks of high inflation and commodity prices pose to developing countries. In July, the island’s former president Gotabaya Rajapaksa fled the country and resigned following months of mass street protests.

Sri Lanka owes about $40bn in public debt to creditors including China, India and Japan as well as private bondholders.

It reached a preliminary, “staff level” agreement with the IMF in September and has imposed a series of unpopular measures designed to meet the lender’s requirements, including raising taxes and utility prices and cutting subsidies.

The US has in recent months criticised China for allegedly slowing down debt restructurings in Sri Lanka and Zambia, accusing Beijing of exacerbating economic suffering.

Speaking on a visit to India last month, US Treasury secretary Janet Yellen said China needed to be “constructive” and “come to the table” in debt negotiations.

Sri Lanka has started more than half a dozen IMF programmes in the past but many were not completed. Wickremesinghe warned that the country must comply with the lender’s requirements in order to restore its credibility.

“All their conditions must be fulfilled,” he said, “or else they will stop working with us”.

Additional reporting by Cheng Leng in Hong Kong

Read the full article here

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room March 7, 2023
Share this Article
Facebook Twitter Email Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News
Sports

Mark Selby withstands Ryan Day charge to set up clash with Shaun Murphy in semi-finals of Tour Championship

News Room News Room March 31, 2023
Trump can still run for president in 2024 after being indicted
South Africa surprises with bigger rate hike than forecast
UK strikes agreement to join Asia-Pacific trade bloc
Rafael Nadal eyes injury comeback in time to bid for 15th Roland-Garros title – ‘I’ll try to be competitive’
Republican rivals, leaders rally around Donald Trump after indictment
Disney’s Florida surprise: an end run around DeSantis
Dengue fever spreads across Sudan with health response weakened
- Advertisement -
Ad imageAd image

You Might also Like

Business

UK strikes agreement to join Asia-Pacific trade bloc

March 31, 2023
Business

Prepare for a multipolar currency world

March 31, 2023
Business

China envoy warns EU of ‘peril’ from following US on trade curbs

March 30, 2023
Business

Finland cleared to join Nato as Turkish parliament backs accession

March 30, 2023
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Cryptocurrency
  • Forex
  • Stock Market

About US

Jaraa'id is your one-stop website for the latest global and local news and updates, follow us now to get the news that matters to you.
Quick Link
  • Privacy Policy
  • Terms of use
  • Press ReleaseSubmit
  • Advertise
  • Contact
Top Sections
  • Business
  • Sports
  • Videos
  • Market DataLive
  • Weather

Subscribe US

Subscribe to our newsletter to get our Latest articles instantly!

I have read and agree to the terms & conditions

2023 © Jaraa'id. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?