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Last Updated : 2024-05-19 23:42:00
25 February 2023 09:39 pm - 12 - {{hitsCtrl.values.hits}}
The International Monetary Fund (IMF) on Saturday called for ‘timely and orderly processes’ under common framework with regards to Sri Lanka’s debt resolution. The island nation faced severe economic crisis which resulted in high debt.
In a statement issued after conclusion of G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under India’s presidency, IMF Managing Director Kristalina Georgieva strongly endorsed efforts to strengthen the debt architecture and improve the speed and effectiveness of debt resolution, keeping in mind rising debt vulnerabilities in many countries. Sovereign debt vulnerabilities, which were already in an elevated state before the pandemic, have been exacerbated by the shocks stemming from Covid-19 and Russia’s war against Ukraine. This is particularly the case for developing and low-income countries with very limited policy space and huge development needs, she added.
During 2020, in order to strengthen debt architecture, the G20 initiated Debt Service Suspension Initiative (DSSI) and established the Common Framework (CF) for debt resolution. “It is now critical to complete Zambia’s debt restructuring, establish a Creditor Committee for Ghana and advance work with Ethiopia. Nonetheless, more predictable, timely and orderly processes are needed both for countries under the CF and for those not covered by it, including Sri Lanka and Suriname,” she said.
She reminded of global growth slowdown in 2023. She also recalled from her previous blog that too many people in too many countries are struggling to make ends meet. Keeping this in mind, the international community, has a responsibility to come together to find solutions for the most vulnerable members of global family. “This calls for urgent action to strengthen the international financial architecture, especially in the area of debt resolution and strengthening the global financial safety net,” she said.
Considering the great uncertainty and repeated turbulence in the global economy, she emphasised on further bolstering the IMF’s capacity to support its members. This applies most urgently to its concessional financing for low-income countries through and Poverty Reduction and Growth Facility (PRGT). Demand for PRGT support has reached unprecedented levels and can only be met if matched by an increase in PRGT loan and subsidy resources. In addition, a successful quota review — which the IMF’s membership has committed to complete by December 2023 — is critical for a strong Global Financial Safety Net.
“The latter has always been important for global stability and is even more important in today’s challenging global environment, especially for the most vulnerable countries and people. Our common interest is to secure a well-functioning and integrated global economy, for the sake of a more secure and prosperous world,” she said.(The Hindu Business)
lion Sunday, 26 February 2023 05:03 AM
Please impose as a condition that a government with a peoples mandate to be established in Srilanka to consider the IMF loan.
Perera Sunday, 26 February 2023 02:57 PM
If you are sure that the government has no mandate to govern, file a case and challenge the government
DW Sunday, 26 February 2023 06:03 AM
IMF, Sri Lanka will never learn. They've just spend over 11 million rupees on Independence day parade when the money could've spent on essential medicines or improving malnourished children.
Joshua Sunday, 26 February 2023 07:00 AM
NOT only orderly debt restructuring process but IMF should look at this undemocratic govt and President. No mandate by the people for the president
Jude Sunday, 26 February 2023 07:04 AM
IMF making it difficult for SL to get the bailout MONEY!! And I reiterate, the present regime shouldn't get any bailout MONEY from IMF!! Coz the government and the leader blatantly violates human Rights!!
Nihal S Sunday, 26 February 2023 11:28 AM
Dear IMF - are you able to impose conditions such as more accountability from the Government and steps to eliminate waste
Bandu Abey Sunday, 26 February 2023 03:40 PM
It is high time that the opposition parties warn IMF that they may not honour the agreement(s) if the undisclosed and hidden conditions are anti-common people, and redraft.
Rathnavali Sunday, 26 February 2023 04:22 PM
All those people who are commenting looks like they are not interested in getting our country out of the economic crisis, which should be given the highest priority. Elections can wait till we get back on our feet.
Ruwan G Sunday, 26 February 2023 09:14 PM
IMF loans are no longer for the countries that has no legitimacy, an established government that is continue to engage in dishonesty, HR violations and deceiving public.
Patriot Sunday, 26 February 2023 09:30 PM
Fixed exchange rate to USD and UK Pounds and Euro for all the countries should be implemented once again by the relevant world authority on the lines same as during pre - 1955 era to address the economic crisis coupled with inflation.
Indra Dassa Monday, 27 February 2023 06:05 AM
Sri Lanka's care taker government leading by Ranil Wickaramasingh must learn the lesson in regards to spending tax payers money for un wanted events recently to show off his madness, when the country is in a deep financial crisis due to mainly heavy mis used of international loans by previous government and his previous government between 2015 and 2019 break in to the central bank of Sri Lanka ( the Bond Scam ).
Ben Wednesday, 01 March 2023 10:34 PM
Demand Srilanka government to take genuine effort to collect stolen billions of dollars of people’s money
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