After China’s assurance, the way for Sri Lanka to get relief package from IMF was cleared.
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Sri Lankan President Ranil Wickremesinghe gave this information on Tuesday. In January, India also strongly supported efforts to get loans from the IMF to Sri Lanka, which is going through an economic crisis. Wickremesinghe also holds the charge of the Finance Ministry.
China has assured support for Sri Lanka’s debt restructuring, paving the way for the debt-ridden country to get a $2.9 billion bailout package from the International Monetary Fund (IMF). Sri Lankan President Ranil Wickremesinghe gave this information on Tuesday. In January, India also strongly supported efforts to get loans from the IMF to Sri Lanka, which is going through an economic crisis. Wickremesinghe also holds the charge of the Finance Ministry. He informed the Parliament, “A fresh letter has been received from the Exim Bank of China, after which
Our letter of intent has been sent to the IMF. The obligation from our side has been fulfilled and it is expected that by the third or fourth week of this month the IMF will fulfill its duty. This will also make it possible for us to get funds from the World Bank and the Asian Development Bank (ADB). In an earlier letter, China had asked for a two-year moratorium for loan repayment, which the IMF considered insufficient.
The IMF in September last year approved a $2.9 billion bailout package for Sri Lanka over a four-year period, subject to Sri Lanka’s ability to restructure its debt with creditors. By the end of June 2022, Sri Lanka had a bilateral, multilateral and commercial debt of about $ 40 billion. Of the total debt, the share of debt from China is 20 percent and bilateral debt is 43 percent.
Pakistan, another neighbor of India facing cash crunch, is awaiting an installment of $1.1 billion from the IMF. A media report said on Tuesday that Pakistan has informed the IMF that it has requested China to extend the term of ‘State Administration of Foreign Exchange (SAFE)’ deposits of two billion dollars for one more year. The deposit is due to mature at the end of the current month. China has total SAFE deposits of $4 billion. The maturity period for the remaining amount is in the next few months.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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