COLOMBO: India has advised the Worldwide Financial Fund that it strongly helps Sri Lanka’s debt restructuring plan because the island nation seeks a $2.9 billion mortgage from the worldwide lender, in line with a letter seen by Reuters.
“We hereby affirm our robust assist for Sri Lanka’s potential (mortgage) program and decide to supporting Sri Lanka with financing/debt aid in step with restoring Sri Lanka’s public debt sustainability,” Indian finance ministry official Rajat Kumar Mishra advised the IMF chief in a letter dated Jan. 16.
Sri Lanka requires the backing of China and India – its largest bilateral lenders – to succeed in a closing settlement with the IMF on the $2.9 billion mortgage that’s important to assist the nation emerge from its worst monetary disaster in seven many years.
“The financing/debt aid supplied by Export-Import Financial institution of India will likely be in step with restoring debt sustainability beneath the IMF-supported program,” the official mentioned.
Sri Lanka has to safe prior financing assurances from collectors, put its heavy debt burden on a sustainable path and enhance public income earlier than the worldwide lender will disburse the funds, the IMF has mentioned.
The island nation is assured of finalising assist from the IMF within the first quarter of 2023.
Sri Lanka owes India round $1 billion that can come beneath the debt restructuring plan, a supply accustomed to the matter advised Reuters earlier this week.
New Delhi individually supplied Sri Lanka with about $4 billion in fast help between January and July final yr, together with credit score traces, a forex swap association and deferred import funds.
Sri Lanka owed Chinese language lenders $7.4 billion – practically a fifth of its public exterior debt – by the top of final yr, in line with calculations by the China Africa Analysis Initiative (CARI).
“We hereby affirm our robust assist for Sri Lanka’s potential (mortgage) program and decide to supporting Sri Lanka with financing/debt aid in step with restoring Sri Lanka’s public debt sustainability,” Indian finance ministry official Rajat Kumar Mishra advised the IMF chief in a letter dated Jan. 16.
Sri Lanka requires the backing of China and India – its largest bilateral lenders – to succeed in a closing settlement with the IMF on the $2.9 billion mortgage that’s important to assist the nation emerge from its worst monetary disaster in seven many years.
“The financing/debt aid supplied by Export-Import Financial institution of India will likely be in step with restoring debt sustainability beneath the IMF-supported program,” the official mentioned.
Sri Lanka has to safe prior financing assurances from collectors, put its heavy debt burden on a sustainable path and enhance public income earlier than the worldwide lender will disburse the funds, the IMF has mentioned.
The island nation is assured of finalising assist from the IMF within the first quarter of 2023.
Sri Lanka owes India round $1 billion that can come beneath the debt restructuring plan, a supply accustomed to the matter advised Reuters earlier this week.
New Delhi individually supplied Sri Lanka with about $4 billion in fast help between January and July final yr, together with credit score traces, a forex swap association and deferred import funds.
Sri Lanka owed Chinese language lenders $7.4 billion – practically a fifth of its public exterior debt – by the top of final yr, in line with calculations by the China Africa Analysis Initiative (CARI).
