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Agreements with external commercial creditors are imminent:
Signing of Memorandum of Understanding with the Official Creditors Committee and Exim Bank:
The International Monetary Fund (IMF) yesterday expressed confidence that Sri Lanka will reach an agreement with external commercial creditors that is consistent with the parameters of the plan.
Julie Kozak, director of the IMF’s communications department, said at an IMF news conference that sufficient progress had been made on the debt restructuring. “Program performance is strong, with most quantitative and structural conditions of the second review being met or implemented with delays, and reforms in some areas remaining on track,” she said.
“There is a strong expectation to reach an agreement with external commercial creditors that is consistent with the parameters of the plan. So overall we see sufficiently strong progress on the debt restructuring front,” she said. Kozak added that authorities have been in extensive discussions with external official creditors on a memorandum of understanding with the official creditors committee and a final agreement with the Export-Import Bank of China. “Discussions with external bondholders are continuing with the aim of reaching an agreement in principle as soon as possible,” the director said.
The International Monetary Fund and Sri Lankan authorities reached a staff-level agreement on the second review of the Extended Fund Facility (ESL) for Sri Lanka. The international lending institution concluded its Article IV review of the IMF’s economic policies through 2024 to complete the second review of Sri Lanka’s economic reform program.
Kozak confirmed that on June 12, the IMF Executive Board will meet to discuss Sri Lanka’s second review and Article IV consultation.
She said the IMF believes that Sri Lanka’s macroeconomic policy reforms are beginning to bear fruit. “Commendable results include rapid deflation, strong reserve accumulation and early signs of economic growth, while maintaining a stable financial system,” she said.
The IMF governor said the next step in debt restructuring is actually completing negotiations with external commercial creditors and implementing in principle the agreement with official creditors. “Domestic debt operations have been largely completed. Debt restructuring discussions are continuing,” she said.
Posts IMF: Significant progress has been made in debt restructuring First appeared in Daily News.
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