8 February 2023 09:59 am Views - 587
The Paris Club Creditors have provided financing assurances to support the International Monetary Fund’s approval of an Extended Fund Facility for Sri Lanka, the President’s Media Division said. Daily Mirror first reported on January 28 that the Paris Club will be making a key announcement soon.
Accordingly, the Paris Club Creditors have now announced their decision to provide financing assurances to support the approval by the IMF Executive Board of the envisaged IMF programme for Sri Lanka, which would allow to restore the country’s macroeconomic stability.
The assurance was given following a meeting by Paris Club members held on January 25, 2023, in the presence of representatives from Hungary, Saudi Arabia, the Kuwait Fund for Arab Economic Development and India, as well as from the International Monetary Fund and the World Bank.
They examined the macroeconomic and financial situation of Sri Lanka, including its long-term debt sustainability, and the need for a debt treatment by all bilateral creditors to both fill the financing gap and to ensure Sri Lanka’s debt sustainability in line with the proposed Extended Fund Facility.