Current:Home > NewsSri Lanka says it struck a deal with creditors on debt restructuring to clear way for IMF funds-DB Wealth Institute B2 Reviews & Ratings
Sri Lanka says it struck a deal with creditors on debt restructuring to clear way for IMF funds
lotradecoin withdrawal limits explained View Date:2024-12-26 02:35:39
COLOMBO, Sri Lanka (AP) — Sri Lanka said Wednesday that it has reached an agreement in principle with a group of creditors including India and Japan on debt restructuring, a crucial move toward unlocking a second installment of a $2.9 billion bailout package from the International Monetary Fund.
The agreement with the Official Credit Committee covers approximately $5.9 billion of outstanding public debt and consists of a mix of long-term maturity extension and reduction in interest rates, a statement from the country’s Finance Ministry said.
It also said the agreement will facilitate a swift approval by the IMF Executive Board of the review of Sri Lanka’s IMF-supported program, allowing for the next tranche of IMF financing of about $334 million to be disbursed. The IMF said in September Sri Lanka’s economy was recovering, but it needed to improve its tax administration, eliminate exemptions and crack down on tax evasion.
Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt — more than half of it to foreign creditors.
Its economy was plunged into crisis, with severe shortages of food, fuel and other necessities. Strident public protests led to the ouster of then-President Gotabaya Rajapaksa. The IMF agreed in March to a $2.9-billion bailout package, releasing the first payment shortly thereafter.
Sri Lanka needed financial assurances from its bilateral creditors in order to receive the second bailout installment.
The ministry said the debt treatment terms will be further detailed and formalized in a memorandum of understanding between Sri Lanka and the credit committee, which is co-chaired by India, Japan and France and includes 17 countries. It will be “implemented through bilateral agreements with each OCC member in accordance with their laws and regulations,” it said.
veryGood! (118)
Related
- Traveling? Here Are the Best Life-Saving Travel Accessories You Need To Pack, Starting at Just $7
- Britain, France and Germany say they will keep their nuclear and missiles sanctions on Iran
- Thursday Night Football highlights: Eagles beat Vikings, but hear boo birds
- UN General Assembly to take place amid uptick of political violence
- What Conservation Coalitions Have Learned from an Aspen Tree
- Wait — did we really need to raise rates?
- Things to know about Sweden’s monarchy as King Carl XVI celebrates 50 years on the throne
- UFO briefing takeaways: How NASA hopes to shift UAP talks 'from sensationalism to science'
- New York county signs controversial mask ban meant to hide people's identities in public
- A cash-for visas scandal hits Poland’s strongly anti-migration government, weeks before elections
Ranking
- Walmart boosts its outlook for 2024 with bargains proving a powerful lure for the inflation weary
- 'The Other Black Girl': How the new Hulu show compares to the book by Zakiya Dalila Harris
- Americans sharply divided over whether Biden acted wrongly in son’s businesses, AP-NORC poll shows
- Wait — did we really need to raise rates?
- Britney Spears' Ex Sam Asghari Reveals Special Girl in His Life—But It's Not What You Think
- Hunter Biden sues former Trump White House aide over release of private material
- Why are so many people behaving badly? 5 Things podcast
- Families challenge North Dakota’s ban on gender-affirming care for children
Recommendation
-
Police identify suspect in break-in of Trump campaign office in Virginia
-
Slovakia expels one Russian diplomat, but doesn’t explain why
-
On 60th anniversary of church bombing, victim’s sister, suspect’s daughter urge people to stop hate
-
Preparing homes for wildfires is big business that's only getting started
-
State, local officials failed 12-year-old Pennsylvania girl who died after abuse, lawsuits say
-
California school district agrees to pay $27 million to settle suit over death of 13-year-old assaulted by fellow students
-
Ohio attorney general rejects language for political mapmaking reform amendment for a second time
-
California schools join growing list of districts across the country banning Pride flags