Reply To:
Name - Reply Comment
Last Updated : 2024-05-04 21:04:00
Japan, India and France on Thursday announced a common platform for talks among bilateral creditors to coordinate restructuring of Sri Lanka's debt, a move they hope would serve as a model for solving the debt woes of middle-income economies.
It remains uncertain, however, whether Sri Lanka's biggest bilateral creditor - China - will join the initiative launched by Japan, this year's G7 chair, with the aim of kicking off a series of meetings among Sri Lanka's creditors.
"To be able to launch this negotiation process gathering such a broad-based group of creditors is a historical outcome," Japanese Finance Minister Shunichi Suzuki told a briefing.
"This committee is open to all creditors," he said.
French Director General of the Treasury Emmanuel Moulin told the briefing that the group was ready to hold the first round of talks "as soon as possible."
Sri Lanka's central bank governor had told Reuters earlier this week that having a single platform for talks would be a welcome move that would make it easier to discuss and share information.
The island nation of 22 million people last month secured a $2.9 billion programme from the International Monetary Fund to tackle its huge debt burden. But the middle-income economy could not apply for relief under the G20's common framework for debt treatments, which targets only low-income countries.
That has put the onus on major economies to come up with an alternative scheme, leading to the creation of the new platform.
Sri Lanka owes $7.1 billion to bilateral creditors, according to official data from its government, with $3 billion owed to China, followed by $2.4 billion to the Paris Club and $1.6 billion to India.
The government also needs to renegotiate more than $12 billion of debt in eurobonds with overseas private creditors, and $2.7 billion on other commercial loans.
Sri Lanka kicked off talks to rework part of its domestic debt this month and aims to finalize the deal by May.(Reuters)
Quolp Friday, 14 April 2023 02:05 PM
Before that to be solved, solve the IMF loan immediately, and get out of it to save the Mother Lanka.
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
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
Is the situation in Sri Lanka so grim that locals harbour hope that they coul
03 May 2024