Belgium’s CREDENDO agrees to reschedule SL’s debt in restructuring push

The Finance Ministry yesterday announced the signing of a bilateral agreement with Belgium’s export credit agency CREDENDO, to reschedule a portion of its external debt.
The agreement, entered into following the bilateral discussions after the conclusion of the memorandum of understanding with the Official Creditor Committee, covers an estimated 9.6 million euros in outstanding debt, which will be rescheduled as part of the external debt restructuring framework.
“Entering into the bilateral agreement with the government of CREDENDO – Export Credit Agency of Belgium, in relation to the external debt restructuring process, marks a significant milestone and reflects the government of Sri Lanka’s continued commitment to conclude the debt restructuring process successfully, in order to restore debt sustainability and thereby revamp Sri Lanka’s economy,” the Finance Ministry said yesterday.
Under the agreement, CREDENDO has agreed to extend a debt relief measure by rescheduling the outstanding obligations owed by Sri Lanka.
The bilateral agreement was signed by Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma, on behalf of the government of Sri Lanka and Chief Executive Officer Dirk Terweduwe, on behalf of CREDENDO.
The government said the agreement would “certainly pave the way to developing further the deep and longstanding bilateral relationships between Belgium and the government of Sri Lanka,” while extending its “sincere appreciation to Belgium for its continued support and cooperation”.
Sri Lanka has been engaging with the official bilateral creditors as part of its efforts to complete the external debt restructuring, in line with the commitments under its ongoing International Monetary Fund-supported programme.