Paying again: Sri Lanka defaulted on its $46 billion international debt in April 2022 after the nation ran out of international alternate
| Photograph Credit score: AFP
Sri Lanka’s new authorities stated Tuesday (October 1, 2024) it will “evaluation” a $12.5 billion sovereign bond debt restructure deal introduced final month as a part of efforts to restore the nation’s ruined funds.
Restructuring the debt is a cornerstone of the Worldwide Financial Fund rescue plan Sri Lanka agreed to final yr after an unprecedented financial disaster.
Former president Ranil Wickremesinghe had unveiled an settlement with worldwide bondholders, the most important part of the federal government’s international debt, simply days earlier than he misplaced workplace in an election final month. However new international minister Vijitha Herath stated the brand new administration was nonetheless weighing whether or not to proceed with it.
“We’ll evaluation the debt restructure settlement the earlier authorities introduced,” Mr. Herath stated.
Mr. Herath stated an IMF staff would go to Colombo on Wednesday (October 2, 2024) to satisfy members of latest leftist President Anura Kumara Dissanayake’s staff.
The IMF delegation’s assembly was a “courtesy name” and substantive negotiations will begin later this month in america, he added.
Sri Lanka defaulted on its $46 billion international debt in April 2022 after the nation ran out of international alternate, sparking months of acute meals, gasoline and medication shortages.
Mr. Dissanayake, an avowed Marxist, had criticised Mr. Wickremesinghe in the course of the marketing campaign for not securing higher offers with worldwide collectors and vowed to renegotiate if elected.
Final month’s tentative deal had seen bondholders conform to a 27% haircut on their loans.
Revealed – October 02, 2024 11:41 am IST
