Reply To:
Name - Reply Comment
Last Updated : 2024-05-19 14:30:00
10 October 2023 05:20 pm - 15 - {{hitsCtrl.values.hits}}
The Export-Import Bank of China reached a preliminary agreement with Sri Lanka last month on the disposal of China-related debts, China's Foreign Ministry announced on Tuesday, as the island sought debt relief from its biggest bilateral lender.
The update came during a regular news conference in Beijing, in response to a state media query on what assistance Beijing had offered Colombo, which is trying to rework its foreign debt after suspending repayments in May last year.
"In late September, China EXIM Bank, as an official creditor, reached a preliminary agreement with Sri Lanka on the disposal of China-related debts," Wang Wenbin, a ministry spokesperson, said without adding details.
Sri Lanka is going through its worst economic crisis in more than seven decades and needs to secure debt restructuring assurances from China, its largest creditor, to help unlock further support from the International Monetary Fund (IMF).
Neither EXIM Bank nor Sri Lanka's Finance Ministry immediately responded to a Reuters request for comment.
Sri Lanka is in talks with the lender over a $2.9 billion bailout package.
The Fund in September declined to release a second tranche of financial support worth around $330 million after it failed to reach staff-level agreement with Sri Lanka over concerns of a possible shortfall in government revenue generation.
Sri Lanka owed China's EXIM $4.1 billion, or 11% of the country's foreign currency debt, at the end of 2022, according to government data.
"As a friendly neighbour and sincere friend, China .. has been providing assistance... within its capabilities," Wang added.
It was not clear if the IMF would need more details from Sri Lanka's creditors to pass the review and release the next tranche of funding.
Some members of Sri Lanka's official creditor committee, which includes the U.S., Japan and India, are reportedly pushing for a debt structuring deal without China's participation.
China will force deal into secrecy Tuesday, 10 October 2023 07:19 PM
US will give more concessions once the deal is in place. US taxpayers and all other taxpayers in other nations will pay the price for their not getting a deal done first. Whoever gets the deal done first, gets the best deal, and now even India will be forced to give concessions, while China will actually come out with more profit from the deal than before the bankruptcy.
Dee Tuesday, 10 October 2023 08:14 PM
Not good news! Call for elections soon.
Patcitz Tuesday, 10 October 2023 10:22 PM
EXIM Bank bank should not write off the debt until the delayed elections are conducted properly in Sri Lanka. The rights of the people should be honored by the lenders before making any concessions to Sri Lanka. The international community must take into consideration the factors of the people's voice to be heard by the world.
SLEx Wednesday, 11 October 2023 12:55 AM
Yeah. That is pointless. Doing elections at this juncture will only drag our country further into the abyss. Our country needs unpopular decisions to be carried out such as reforms and restructuring of SOEs. These are unpopular only in the mindset of our population. In every other part of the world, its the right thing to do. We ourselves did this for the past 70 years with the votes of the people.
Logical thinker Wednesday, 11 October 2023 03:31 AM
Who cares about elections when you have nothing to eat and your country has gone bankrupt?
Samuel Wednesday, 11 October 2023 03:52 AM
No Bank anywhere in the world cares two hoots whether elections are held in any country or not. Banks are only interested in money matters, hahaha.
City Wednesday, 11 October 2023 07:35 AM
Think of the economy before elections, and provincial council's is a huge burden.
Punchi Wednesday, 11 October 2023 12:06 AM
There is no detail here for us and international creditors. Has China erased the debt, refinanced or deferred payments ?
Uali Wednesday, 11 October 2023 12:48 AM
We as a citizens of SriLanka,kindly request senior administration of EXIM bank to table all the details of the money borrowed and project reports produced by borrower so on and so forth,because we have to pay the loans
Kevin Wednesday, 11 October 2023 01:05 AM
RW has agreed to a secret deal. It had to come out of China. Can't be good for Srilanka
Ram Wednesday, 11 October 2023 02:46 AM
China did not help as a friend but helped us with ulterior motives. Hope the present arrangement will not place further raxes on us
Ruwan Wednesday, 11 October 2023 03:48 AM
This is excellent news for Ranil and his govt which has strived hard to gain China's leeway despite constant obstacles by the Opposition. The people of this country are really not bothered whether elections are held or not. All they're interested about is how soon we can get the IMF loan to go ahead with the long delayed development.
Buddhist Wednesday, 11 October 2023 05:27 AM
China only talks but no action. Here again, they say they have reached an agreement but do not say what agreement was reached. What it tells is that they have not reached any agreement.
Jeewaratne Hulle Wednesday, 11 October 2023 07:36 AM
So it appears the cry babies who thought otherwise seems to be rather upset over this news! Yes, going forward the IMF should call for implimentation of their recommendations no doubt. The obvious need of the majority is essentially economic in nature and not political, though it might dampen the aspirations of some folks and their fair skinned masters, who are waiting to grab their share of the pie.
Sinna Wednesday, 11 October 2023 10:35 PM
Our country put into this debacle by all who ruled the country for last 75 years,we don’t want keep them in administration even single day more than due, they are such rogues swindlers looters and current president,who accused for masterminding shameful central bank scam is ruling without People’s mandate and only good for his cahoots
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
The state-run loss-making State Mortgage & Investment Bank (SMIB) has reveale
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
17 May 2024 - 0 - 121
