Sri Lanka, trapped in economic crisis, told this condition of getting relief package from IMF, this is the last hope
The Government of Sri Lanka has said that the cooperation of the lending institutions and countries to Sri Lanka will be very important to get the much-needed relief package from the International Monetary Fund (IMF). On September 1, the IMF had announced a loan of $ 2.9 billion to Sri Lanka.
On September 1, the IMF had announced a loan of $ 2.9 billion to Sri Lanka.
The government of Sri Lanka, which is facing a deep financial crisis, has said that the cooperation of the lending institutions and countries to Sri Lanka will be very important to get the much-needed relief package from the International Monetary Fund (IMF). On September 1, the IMF had announced a loan of $ 2.9 billion to Sri Lanka. This loan of four years duration was announced by the IMF to help Sri Lanka overcome the unprecedented economic crisis.
Awaiting approval of IMF Board of Directors
Sri Lanka’s government said in an online meeting with its lenders on Friday that getting guarantees from bilateral lenders is a prerequisite for the approval of the monetary fund’s board of directors for this relief package. This relief package is likely to be implemented by the middle of December. The Monetary Fund does not give loans to countries whose debt does not appear to be sustainable. In such a situation, it is necessary that Sri Lanka adopt an advance comprehensive debt settlement route.
The Sri Lankan government, in a meeting with the lenders, said that practically this requires financial guarantees from bilateral lenders. It said this would allow the IMF to have a satisfactory level of convenience so that bilateral lenders can support efforts to restore the sustainability of the public debt.
$2.9 billion in debt
Let us tell you that earlier, the International Monetary Fund (IMF) had announced a loan of $ 2.9 billion to help Sri Lanka, which is suffering from the historic economic crisis, but its difficulties were still not taking the name of lessening. In view of this, the opposition party in Sri Lanka had demanded to put the agreement with the IMF on the table of Parliament.
In fact, on September 1, a 48-month loan was agreed between the IMF and Sri Lankan officials under the Extended Fund Facility (EFF) of about $ 2.9 billion. Sri Lankan President Ranil Wickremesinghe had said according to an official statement that now Sri Lanka will convert a free trade agreement with India into a comprehensive economic and technical partnership.
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