IMF will give relief package to Sri Lanka on the basis of China, Pakistan hopes to get installment of $ 1.1 billion
[ad_1]
Colombo/Islamabad: The way has been cleared for Sri Lanka, which is going through a historic economic crisis, to get a relief package of about $ 2.9 billion from the International Monetary Fund (IMF). The biggest thing is that on the trust of China, the International Monetary Fund has agreed to give a relief package to Sri Lanka. However, there is also news that in the beginning of this year, during the month of January, India has also supported the global financial institution in the matter of giving relief package to Sri Lanka. On the other hand, Pakistan is also waiting for an installment of about $1.1 billion from the IMF.
Ranil Wickremesinghe informed the Parliament
Sri Lankan President Ranil Wickremesinghe, who is in charge of the Finance Ministry, has informed his Parliament on Tuesday that a new letter has been received from China’s Exim Bank, 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 World Bank and Asian Development Bank (ADB). In an earlier letter, China had asked for a two-year moratorium for loan repayment, which the IMF considered insufficient.
40 billion dollar foreign debt on Sri Lanka
In September last year, the IMF had approved a relief package of $ 2.9 billion to Sri Lanka over a period of four years. However, this would depend on Sri Lanka’s ability to restructure the debt with the lenders. By the end of June 2022, Sri Lanka had a bilateral, multilateral and commercial debt of about $ 40 billion. Out of the total loan, the share of loan from China is 20 percent and bilateral loan is 43 percent.
Pakistan waiting for $ 1.1 billion installment
However, another neighbor of India, which is facing cash crunch, is waiting for 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 ‘State Administration of Foreign Exchange (SAFE)’ deposit of two billion dollars for one more year. This deposit is due to mature at the end of the current month. China has total SAFE deposits of $4 billion. The maturity period of the remaining amount is in the next few months.
[ad_2]
Source link
