China Backs Sri Lanka Debt Plan – Bloomberg

According to an article published on the Bloomberg news,

China has given assurances that it will support Sri Lanka’s debt restructuring, clearing the biggest hurdle for the South Asian nation to secure a $2.9 billion bailout from the International Monetary Fund.

Sri Lanka’s largest bilateral creditor gave written support for the debt restructuring via the Export-Import Bank of China on March 6, according to people familiar with the situation, who asked not to be identified as the information isn’t public. The letter meets the requirements of the IMF, the people said.

China’s backing completes the support Sri Lanka needs from creditor nations to allow the IMF board to approve the loan that was agreed upon by the Fund staff in September. Sri Lanka had anticipated the board’s nod by the end of 2022 although it has since adjusted expectations to within this quarter.

Article however states that, China Eximbank, the office of Sri Lanka President Ranil Wickremesinghe, who’s also the finance minister and the Nandalal Weerasinghe Governor of CBSL was not available for comment on the matter.

– Bloomberg

by Daily News Sri Lanka

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