Sri Lanka aims to finalize $2.9 billion IMF loan in December – sources

the second quarter Agreed in principle with all creditors, sources involved in the event Say. Earlier this month, the country reached a staff-level agreement with the International Monetary Fund on a loan of about $2.9 billion, conditional on obtaining Financing guarantees from official creditors and negotiations with private creditors. “It’s going to be very tough, but a lot depends on China, basically a creditor, so maybe it can be done,” one demanded Anonymous bondholders said. Friday’s virtual presentation to investors marked Sri Lanka’s first decision to restructure earlier this year $, the government has formally approached private bondholders billion in international sovereign bonds, held by private creditors such as asset manager BlackRock (NYSE:

BLK) and Ashmore. Central Bank Governor Nandalar Weerasinghe and Finance Minister Mahinda Sirivadna and Financial and Legal Adviser Raza Representatives from Lazard participated in the virtual presentation (NYSE: LAZ) and Clifford Chance. “It’s a fairly typical introductory presentation that we’ve seen many times before,” the bondholder said. “The government is showing how bad things are and is basically trying to anchor people’s expectations on deep haircuts.”

Bilateral Debt Negotiations Sri Lanka also needs to renegotiate its debt with bilateral creditors such as China, Japan and India. Sri Lankan government officials said the country was encouraging the establishment of an interim bilateral creditor coordination platform to secure financing guarantees from official bilateral creditors, sources who attended the briefing said.

As a middle-income country, according to the World Bank, Sri Lanka is unable to negotiate with bilateral creditors under G Common Framework for Debt Management. State officials added that the temporary platform should be established as soon as possible by the creditors themselves, and the government is just pushing it. 20 Figure – Sri Lanka’s Debt Negotiation Road

https://graphics.reuters.com/SRILANKA-DEBT/TIMELINE/zdvxommbmpx/graphics.png 67 Sources say that is being provided to the government The proposed Lazard said the move would be similar to G platform. According to the sources, the presentation shows that it will provide creditors with an equal basis for obtaining relevant information and a forum for discussing emergency lines of credit. Sri Lanka’s total foreign dollar currency debt .70 Billion is equivalent to .2% of GDP, according to the latest IMF report for March.

Government officials added that due to changes in the domestic banking system Impact, the scope of local debt restructuring is still under study, and no final decision has been made. So far, there have been no defaults on local currency debt, they added. The country has paid Sri Lanka Development Bonds in US dollars and local currency, the central bank governor said. Those bonds totaled $2.6 billion, or 3.3 percent of GDP, according to an assessment released by the International Monetary Fund in March. 20