Countries that had sought IMF bailouts had faced strict conditions - China
by Mandana Ismail Abeywickrema
Sri Lanka’s ongoing discussions with the International Monetary Fund (IMF) has had an impact on the ongoing discussion for a $ 2.5 billion assistance sought by the Government of Sri Lanka as well as future loans, Chinese Ambassador to Sri Lanka Qi Zhenhong said today (25).
Speaking to a group of selected senior journalists, the Chinese envoy said both the Governments of China and Sri Lanka were still engaged in discussions on the financial assistance package that includes $ 1 billion loan facility and $ 1.5 billion line of credit.
“The Sri Lankan Government going to IMF has had an impact on the discussions,” he said, adding that debt restructuring, which is an important fact in IMF negotiations, would have an impact on future loans.
However, Zhenhong noted that China will closely watch the discussions between the government of Sri Lanka and the IMF.
He further noted that countries that had sought IMF bailouts had faced strict conditions.
However, Zhenhong added that China has already provided assistance to Sri Lanka to the tune of $ 2.8 billion in different forms.
The breakdown of the $ 2.8 billion assistance is – $ 1 b term facility, Yuan 2 b ($ 300 m) assistance, $ 1.5 b swap.
Source: The Morning
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