IMF starts talks with SL on a new loan

23 July 2012 10:44 pm - 15     - {{hitsCtrl.values.hits}}

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The International Monetary Fund, which has just fully disbursed a $2.6 billion loan to Sri Lanka, said on Monday it has begun talking with authorities in Colombo about arranging a new credit called an extended fund facility.

Last Friday, the IMF disbursed the last tranche of the existing loan -- $415 million -- following an assessment of the government's policy reforms.
Koshy Mathai, the IMF's resident representative in Sri Lanka, said there has been a "very preliminary discussion" with the government on a new facility.
He said the IMF wanted to "move to a new kind of arrangement, a sort of higher level of arrangement, where we are able to focus on macroeconomic goals we already have."

However, he said the specific arrangement, possible amount and tenure have not been talked about so far.
Central Bank Governor Ajith Nivard Cabraal in June said Sri Lanka would seek an extended fund facility from the IMF to boost the island nation's economy after the current loan programme ends.

The $2.6 billion IMF loan has helped Sri Lanka keep inflation at a single digit, boost reserves to a record high as well as reduce the fiscal deficit and debt-to-GDP ratio to manageable levels. (Reuters)

  Comments - 15

  • AbuSaarah Tuesday, 24 July 2012 07:47 AM

    Miracle of Asia.

    Dadoriya Tuesday, 24 July 2012 03:52 AM

    "Borrowing from Peter to pay Paul".

    Nodrog Tuesday, 24 July 2012 04:34 AM

    IMF doling out more rope for us to hang ourselves?

    jack Tuesday, 24 July 2012 09:01 AM

    Do the government top officials seriously consider the fact that repayment of debt service cost & principal without affecting to living condition of ordinary citizens.

    balu Tuesday, 24 July 2012 05:02 AM

    omg more loans

    our generations will have to pay back with punnakku

    Aliya Tuesday, 24 July 2012 04:51 AM

    Apita aadareta thamai mun Naya denne...

    John Tuesday, 24 July 2012 05:12 AM

    The perpetual overdraft at a perpetually high interest - even the IMF must be laughing all the way to the bank!

    #Pietersen Tuesday, 24 July 2012 05:20 AM

    Borrowing money to construct wasteful projects like Hambanthota Harbour, Norochchole Power Plant, Mihin Air...etc Keep going...economy will sink deeper soon....!!

    Dadoriya Tuesday, 24 July 2012 05:17 AM

    Did you understand the above phrase.

    Shifan Tuesday, 24 July 2012 09:40 AM

    don't know how many millions went 2 swiss......

    Sathis Jayaweera Tuesday, 24 July 2012 06:16 AM

    We will never end with this trap and we need more loan in future

    KJ Tuesday, 24 July 2012 01:04 AM

    Oh k.. i am ready to apply my load too.. to support my "ordinary" living - do u still think that we can live with Rs.2,500? Mr Minister please share your logic to live in SL.. i still can not figure it out!!

    Ayam Tuesday, 24 July 2012 06:58 AM

    We should pay back these loans...not jobless politicians and lazy government servants; they get duty free for their luxury life…

    Calistus Jayatilleke Tuesday, 24 July 2012 02:16 AM

    Now there is a good chance for the Ministers to get salary increases soon.

    Davina Tuesday, 24 July 2012 10:57 AM

    Loan after loan after loan. The rich get richer, the poor poorer and no one seems to realise that this ship is going down.


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