Bondholders fear regime change impact

20 April 2024 08:36 am - 22 - {{hitsCtrl.values.hits}}

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Colombo, April 20 (Daily Mirror) - The representatives of bondholders who hold around 50 per cent of Sri Lanka’s outstanding international sovereign bonds (ISB), during closed-door interactions with the representatives of Sri Lankan political parties, have expressed fear whether any debt restructuring agreement will be honoured in case of a regime change at the elections pending this year, Daily Mirror learns.

The bondholders held talks with various political leaders including from the opposition parties such as the Samagi Jana Balawegaya (SJB), the National People’s Power (NPP) and the United Republican Front (URF) led by MP Patali Champika Ranawaka during the New Year holiday period.

During talks with the NPP, the party has assured that the programme with the IMF (International Monetary Fund) will not be derailed. Currently, the Sri Lankan government has concluded the initial restricted discussions with nine members of the Steering Committee of the Ad Hoc Group of Bondholders over a span of three weeks. Sri Lanka was joined by its legal and financial advisors Clifford Chance and Lazard, respectively, while the restricted members of the Steering Committee were joined by the

Group’s legal and financial advisors, White & Case and Rothschild & Co., respectively.

The Steering Committee as a whole comprises ten of the largest members of the Group, with the Group controlling approximately 50% of the aggregate outstanding amount of ISBS.

Earlier, the Finance Ministry said in a statement that the parties failed to come to an agreement on restructuring terms, despite the constructive discussions.

During this period, Sri Lanka, the Steering Committee and its advisors met during a two-day working session in London on 27 and 28 March to discuss the Group’s latest debt treatment proposal. Prior to the meetings, March 15 Sri Lanka had also sent its own debt treatment proposal to the Group’s advisors which was rejected by the Steering Committee.

Also, Sri Lanka rejected last week international bondholders’ proposal to restructure more than $12 billion in debt, putting at risk critical International Monetary Fund support and delaying its efforts to resolve a two-year-long debt crisis.

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Comments - 22

Amila Perera Saturday, 20 April 2024 08:45 AM

Bon holders must know that these regimes are the responsible regimes for bankruptcy of the country and ultimately loss of their money.

Start Paying These Bond Investors and See How Bad The Situation Is. Saturday, 20 April 2024 01:49 PM

Exactly. No comments from the government politicians now who were recently bragging the accumulation of over USD$ 5 billion in the reserves. Start paying this bunch of bond investors now and see how the citizens will chase all of your miserable morons into the sea. The country IS BANKRUPT AND WILL BE BANKRUPT FOR AT LEAST 10 more years. At the rate Ranil and his morons are spending on a monthly basis to maintain a high profile life and a huge Tri- Forces, this debt crisis may even never End.

senpera Saturday, 20 April 2024 06:59 PM

The regimes represent the people who voted for them...LOL

SLC Peiris Saturday, 20 April 2024 08:47 AM

KB has become the leader in the purvey of misinformation.

Don Saturday, 20 April 2024 08:52 AM

Easy..Present the agreement to party leaders and get their consent to proceed as this is a national level agreement.

Mohandev Saturday, 20 April 2024 08:52 AM

At least traitors

Stupid Investors Saturday, 20 April 2024 09:20 AM

Teach these investors not to invest in a bankrupt country. Should have done their homework on the amount of loans from IMF, ADB, China, Japan, Eurozone etc SL has taken over the years and always not being able to pay them in full. These investors encouraged SL politicians over the years to keep on taking loans and now crying wolf! Just suck it up and prepare for it to be written off.

Time to strong up Bond holders to accept major losses Saturday, 20 April 2024 09:26 AM

The Bond holders can accept 5% of original investments. They are rich, like Rajapaks family. Losing 95% of their government bond is better than not even getting 5% of the last value. Central Bank crooked governor can say, NPP government will get rid of him too, so bond holder should accept 2% or potentially get nothing after election.

Voter Saturday, 20 April 2024 10:12 AM

Regime change is inevitable, whether para suddas like it or not….

Ranjith Saturday, 20 April 2024 10:37 AM

KB don't worry too much are you living in srilanka Ranil is protecting Rajapakses, definitely Rajapakses will settled all these loans. I am sure SJB will honour the agreement with IMF KB please don't worry.

Waco Saturday, 20 April 2024 10:45 AM

Another Drama plan by Ranil before the elections, which is round the corner.

Waco Saturday, 20 April 2024 10:47 AM

This is a another Drama , planned by Ranil before the elections, which is round the corner.

joshua Saturday, 20 April 2024 11:33 AM

A regime change is a must whether the so called bond holders like it or not. We need to chase out the rogues and all rogues who robbed the country in the braod daylight and bankrupted country (including their stooges) have to be arrested. Even the Courts have identified who bankrupted the country but this RW won't do anything as he is only greedy for power. So Bondholders even if you do not like it, there is no use crying over it. The regime change is coming and no stopping in that. Mr 10% can go back to his petrol pump in USA.

FredSnR Saturday, 20 April 2024 11:38 AM

When we borrow we lose more than the interest to pay on the loan.We also lose our sovereignty to think and act as a nation. That's because of conditions which lenders impose which in the long run favour the lender not the borrower .So rather than worrying about regime change it is better if we concentrate on how we can pay back our debts which is by working hard, spending less than we earn and getting our priorities right.That means getting rid of all discretionary expenditure till times improve It also means a fairer distribution of wealth, to prevent social unrest, it will improve productivity in the long run and so on. Otherwise we will end up having to sell the family silver(our assets) at fire sale prices, to pay back our loans, the easy way out, often what lenders prefer

Sarvagamika Saturday, 20 April 2024 11:44 AM

Any change or not only good peoples fear.

Adwani Saturday, 20 April 2024 12:04 PM

Bond holders will be able to sue Central Bank of SL. While engaging in campaign to make aware to potential investors to stayaway from SL.

Game of the day Saturday, 20 April 2024 03:05 PM

@Start paying, also don't forget the gov luxury vehicles being used by the skim stars, celebits, families of people behind caged bars etc. The gov budget deficit is expanding every second.

FORTUNE TELLER Saturday, 20 April 2024 03:07 PM

THIS IS NOTHING BUT TRYING TO PUT FEAR IN THE VOTERS, ANOTHER ELECTION SPIN. I BELIEVE THE VOTERS DO NOT GIVE A RATS TAIL AS THEY KNOW WHOEVER COMES INTO POWER WILL REPAY THE DEBTS, WHICH BY DELAYING ONLY HURTS THE COUNTRY AS EXCESS INTEREST IS MOUNTING UP TO MORE AND MORE ADDED TO THE LOAN, IF THERE IS NO REGIME CHANGE THE COUNTRY WILL END UP PAYING FAR MORE THAN THE LOAN THAT WAS BORROWED. WE NEED AND MUST HAVE A CHANGE ALL THE PARTIES ABOVE HAVE AGREED TO KEEP GOING WITH THE IMP TERMS AND CONDITIONS, SO WE THE PEOPLE HAVE NOTHING REPEAT NOTHING TO BE SCARED. HOWEVER, IF THE PRESENT REGIME CONTINUES NOT ONLY WILL BE END UP PAYING MORE INTEREST ON THE TERMS OF REPAYMENT, BUT FAR MORE, LAST BUT NOT THE LEAST, THE CORRUPT POLITICIAN, PUBLIC SERVANTS AND THEIR STOOGES WILL CONTINUE TO FEATHER THEIR NESTS. BY THE GRACE OF GOD, WHOEVER TAKES OVER, THEY WILL BE GUIDED IN THE PATH TO TAKE THE COUNTRY TO A BETTER PLACE TO LIVE IN.

Private Sector is Productive Saturday, 20 April 2024 04:45 PM

@ FredSnR - the issue is most people in the private sectors work their buds off and are productive. However, the politicians and government sectors are so unproductive and their expenditures are way too high. Look at the amount of Senior officers in the Tri -Forces managing obsolete military equipment. Most of the equipment are donated after years of service in the donor’s country. Their high salaries with all kinds of perks doesn’t justify their existence as most are so unproductive. They are mainly there to protect the morons running the country. The rupee has hardly any value in the international market as many are afraid to hold large stocks because of volality. So even you work extra hard and earn more, these morons will tax you more and enrich themselves to a luxurious lifestyle at your expense. Can’t you see it or are you commenting from overseas?

Ara Saturday, 20 April 2024 05:35 PM

The new governments responsibility is the welfare of the people, not some foreign bondholders, if U want to go after the rogues who stole the money, sanction them including rw

Kevin Sunday, 21 April 2024 04:34 AM

A battle of local bond scammers and foreign bond holders. Serves them right as they knowingly lent loans to SL. It was obvious from the start that SL couldn't pay all these loans. Even without regime change there's no way SL can pay bond loans.

FredSnR Sunday, 21 April 2024 10:58 AM

The end result of all this debt, call it bonds, call it loans from IMF, India or whoever. SL will end up losing all its assets. The process has started if headlines are anything to go by and SL appear to be willing sellers.They are partial to land( and sea ) assets which they can develop

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Bondholders fear regime change impact

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