The first meeting of Sri Lankan creditors to discuss Sri Lanka’s debt problem was held on the 9th. China participated as an observer.
Finance Minister Masato Kanda told reporters after the meeting on the evening of the 9th Japan time that it was a “historic achievement” that a wide range of creditor nations cooperated in the debt restructuring of middle-income countries. I hope it will serve as a model case for dealing with the debt problems of middle-income countries.”
“If China decides to participate, I would certainly welcome it,” he said. “We will continue to call on China to formally participate in the meeting of creditor nations,” he said.
First meeting of Sri Lanka creditor nations held, “historic achievement”, Finance Minister Kanda
According to Finance Minister Kanda, officials from the International Monetary Fund (IMF) and the World Bank gave briefings to participants from 26 countries at the meeting, which was held online. Sri Lankan officials also shared the status of the government’s economic and financial reforms.
Sri Lanka needs to meet the IMF’s vision of debt sustainability to secure a $3 billion loan program approved by the IMF in March. In the meantime, the country is trying to balance the demands of creditor nations. The IMF is expected to conduct a program review in September, but uncertainty over China’s participation in creditor talks raises the risk of a delay in reaching a deal.
The Sri Lankan government is expected to present the final draft of its debt restructuring plan by mid-May.
Finance Minister Kanda declined to say when an agreement on the debt restructuring would be reached. On top of that, he said, “I would like to proceed with the negotiations immediately, aiming to reach an agreement as soon as possible.”
news-rsf-original-reference paywall">Original title:Sri Lanka’s Creditors Hold Inaugural Debt Meet as China Observes(excerpt)
2023-05-09 16:40:00
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