The Office of the President of Sri Lanka said on Tuesday that the Paris Club of Lenders provided financial guarantees to support the International Monetary Fund’s approval of an extended credit line for Sri Lanka.
The guarantees are needed to complete the $2.9 billion Sri Lanka rescue plan from the International Monetary Fund, which is still awaiting approval from the Fund’s board.
The Paris Club said in a statement that its members, in addition to a few countries including Saudi Arabia, look forward to working with all bilateral creditors and other stakeholders to move forward a similar debt restructuring as soon as possible.
The informal group of creditors said in a separate statement today Tuesday: “Paris Club members, in addition to Hungary, Saudi Arabia and India, remain looking forward to working with all bilateral creditors and engaging with other key stakeholders to move forward. with a similar debt restructuring as soon as possible.” available time.”
Reuters previously reported on financial guarantees from the Paris Club, which includes Japan, Sri Lanka’s second-largest bilateral creditor.
The Paris Club said in a statement that its members, together with Hungary, expressed their full commitment to negotiations with Sri Lanka on the terms of the restructuring, and while Saudi Arabia supported the process, it “recognized the importance of providing financial guarantees in the near future.” .”
The island of 22 million people made an initial deal with the International Monetary Fund in September, but the money has not yet been disbursed as the bailout must be approved by the fund’s board of directors.
