India has actually told the International Monetary Fund that it highly supports Sri Lankas debt restructuring strategy as the island nation seeks a $2.9 billion loan from the global lending institution, according to a letter seen by Reuters.
We hereby verify our strong support for Sri Lankas prospective (loan) program and commit to supporting Sri Lanka with financing/debt relief constant with restoring Sri Lankas public financial obligation sustainability, Indian finance ministry authorities Rajat Kumar Mishra informed the IMF chief in a letter dated Jan.
16.
Sri Lanka requires the support of China and India - its greatest bilateral loan providers - to reach a final arrangement with the IMF on the $2.9 billion loan that is important to assist the nation emerge from its worst monetary crisis in seven years.
The financing/debt relief offered by Export-Import Bank of India will follow bring back financial obligation sustainability under the IMF-supported program, the main said.Sri Lanka needs to protect previous financing guarantees from creditors, put its heavy financial obligation concern on a sustainable path and improve public revenue before the global loan provider will disburse the funds, the IMF has said.The island country is confident of settling support from the IMF in the first quarter of 2023.
Sri Lanka owes India around $1 billion that will come under the financial obligation restructuring strategy, a source acquainted with the matter told Reuters earlier this week.New Delhi individually offered Sri Lanka with about $4 billion in rapid assistance in between January and July in 2015, including credit lines, a currency swap plan and delayed import payments.Sri Lanka owed Chinese loan providers $7.4 billion - almost a fifth of its public external financial obligation - by the end of in 2015, according to estimations by the China Africa Research Initiative (CARI).
Source - Reuters-Agencies