Fresh US$500 Mn Chinese loan for Budgetary support: Cabraal

14 October 2020 08:02 am - 9 - {{hitsCtrl.values.hits}}

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The government will use the US$500 million loan from the China Development Bank (CDB) for budgetary support, Money, Capital Markets and State Enterprise Reforms Minister Ajith Nivard Cabraal told Daily Mirror yesterday.

He said this would be in addition to the US$500 million loan obtained earlier this year and that the agreement for the fresh loan would be signed between the Finance Ministry and the CDB.

The minister said the government would reduce its dependence on international sovereign bonds as an instrument for raising financial capital.

“We should have a mix of instruments for this purpose. It is part of our debt management criteria. There is market risk involved in depending on one instrument and as such we need to have a range of instruments,” he said.

The government will present its 2021 budget next month in Parliament. In the Appropriation Bill, the borrowing limit for the year is fixed at Rs.2,900 billion and the passage of the budget will be the government's next key parliamentary business next to the 20th Amendment.

A diplomatic source said the proposed US$500 million loan was discussed during the recent visit of the high-powered Chinese delegation to Sri Lanka, though it was not finalized. (Kelum Bandara)

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Comments - 9

Jehan Wednesday, 14 October 2020 10:11 AM

Renuka group will make money, Namal baba will make money, Gots will make money.

Kantha Wednesday, 14 October 2020 10:43 AM

Sure it will be another burden for the people. Honb.Cabral also not capable, That is what people's predicted.

Ranjit Wicks Wednesday, 14 October 2020 10:56 AM

Please keep borrowing. And sell the country to China.

joshua Wednesday, 14 October 2020 11:11 AM

You take we pay. This is typical accountant style of managing cash flows.

Eichmann Bernhard (Germany) Wednesday, 14 October 2020 11:38 AM

With the acceptance of Chinese money, one makes oneis dependent on the Chinese.

abeygunaratna Wednesday, 14 October 2020 12:19 PM

At what interest rate are they giving

MirakRajBanda Wednesday, 14 October 2020 12:38 PM

You can use the MCC grants to cover this loan. From Dragon's claws to Eagle's talons.

Riyad Sri Lanka Wednesday, 14 October 2020 01:28 PM

why do we always depend on borrowing, rather why don't we reduce the expenditure in possible avenues and reduce the country's expenses. income avenues should be explored and year-on-year our debt should be reduced, rather than increasing it year-on-year. eventually my country will be sold to china. Typical strategy - YOU BORROW AND PEOPLE PAY.

Hot sauce Thursday, 15 October 2020 02:17 AM

Why not get 500 million every month for next 5 years? After all, China may even forgive and forget all debts payable by future Chinese generations !!

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Fresh US$500 Mn Chinese loan for Budgetary support: Cabraal

Comments - 9

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