IMF technical team will be in Colombo on Wednesday to analyze debt before restructuring
Date
8/21/2022 7:15:03 AM
(MENAFN) This Wednesday, a technical team from the International Monetary Fund (IMF) will arrive in Colombo to examine the overall external and internal debt of the bankrupt country before the exercise of debt restructuring gets under way following a discussion with the World Bank next month in Washington. In Sri Lanka from August 24 to August 31, the IMF staff will be present.
The Island Nation owes around USD 97 billion in external and domestic debt, of which more than USD 51 billion is owing to foreign creditor countries like Japan, China, India, and the Asian Development Bank. While the loan package sought by President Ranil Wickremesinghe is in the range of USD 2 to 3 billion, the disbursement from the Bretton Woods Institution is taking longer than expected because the Fund prefers to focus on domestic debt restructuring rather relying solely on external debt.
Washington-based authorities claim that the creditor nations won't be approached for guarantees that debt sustainability will be restored until after Sri Lanka's whole debt load has been evaluated. This political maneuver, though, won't happen until after the subject has been examined with the multilateral financing organizations.
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