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☆ World Bank president expresses deep concern on Zambia debt restructuring
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 21 (Reuters) - World Bank President David Malpass said on Tuesday he remained deeply concerned about the debt restructuring stalemate in Zambia and that the bank is working with India and the International Monetary Fund on the G20 debt restructuring process. Zambia meanwhile has been stuck in default since it became the first COVID-era African nation to do so in November 2020. Its finance minister has said it is pushing to finish the long-delayed Common Framework restructuring by end of March or shortly after. Ghana defaulted on its external debts in December and has since sealed a domestic debt swap and requested a restructuring of its bilateral debts via the G20's Common Framework vehicle. Malpass also said Sri Lanka was now eligible to get $1.75 billion over four years.

☆ Life under lockdown: How our world looked three years ago
▼ + stars: | 2023-03-20 | by ( Jeremy Schultz | ) www.reuters.com time to read: 1 min

People practice social distancing inside an elevator prior to arriving at their workplaces at World Trade Center, after the government announced that private and state companies will reopen their offices after almost two months of lockdown in...morePeople practice social distancing inside an elevator prior to arriving at their workplaces at World Trade Center, after the government announced that private and state companies will reopen their offices after almost two months of lockdown in Colombo, Sri Lanka, May 11, 2020. REUTERS/Dinuka LiyanawatteClose

☆ IMF approves nearly $3 bln bailout for Sri Lanka
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

March 20 (Reuters) - The International Monetary Fund (IMF) on Monday said its executive board approved a nearly $3 billion bailout for Sri Lanka, and the country's presidency said the program will enable it to access up to $7 billion in overall funding. The decision will allow an immediate disbursement of about $333 million, the IMF said, and will spur financial support from other partners, potentially helping Sri Lanka emerge from its worst financial crisis in over seven decades. IMF Managing Director Kristalina Georgieva said Sri Lanka also needs to undertake various reforms. "For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported program with strong ownership for the reforms is critical," Georgieva said in a statement. Sri Lanka President Ranil Wickremesinghe's office said in a statement that the IMF program will help improve the country's standing in international capital markets, making it attractive for investors and tourists.

CNN —Sri Lanka on Monday secured a much-anticipated loan of about $3 billion from the International Monetary Fund (IMF) as the South Asian nation navigates its worst financial crisis in decades. The deal, nearly a year in the making, will aim to “restore macroeconomic stability and debt sustainability” and “unlock Sri Lanka’s growth potential,” the IMF said in a statement. In July last year, President Ranil Wickremesinghe said Sri Lanka is “bankrupt,” adding negotiations with the IMF were “difficult.”Monday’s loan approval will provide much-needed respite for the nation as it faces an uphill climb to revive its flailing economy. The IMF will immediately disburse an initial $333 million to Sri Lanka, with more funds to follow in the coming months. “For Sri Lanka to overcome the crisis, swift and timely implementation of the EFF-supported program with strong ownership for the reforms is critical,” IMF managing director Kristalina Georgieva said in a statement.

☆ I traveled to 79 countries as a digital nomad. I'm not tied to one place and I find work on platforms like Upwork and Fiverr.
▼ + stars: | 2023-03-19 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +4 min

Katie Macleod has traveled to 79 countries as a digital nomad. The 28-year-old graphic designer wants to visit 100 countries before turning 30. I was in Sri Lanka when the pandemic struck, making my goal of visiting 100 countries before turning 30 a bit more of a challenge. Traveling gives me freedom and being a digital nomad means adapting your surroundings to suit you. I've also found that networking online and within digital nomad hotspots is also beneficial.

☆ A Russian trainspotter who became obsessed with taking photographs of Putin's 'ghost train' now lives in exile: report
▼ + stars: | 2023-03-15 | by ( Sophia Ankel | ) www.businessinsider.com time to read: +3 min

A trainspotter spent years tracking Putin's secret train, which he reportedly uses to get around. Mikhail Korotkov told The Washington Post that in 2021, he felt like he was being watched. Mikhail Korotkov, 31, spent years tracking, photographing, and blogging about Putin's armored train, which he reportedly uses to travel inconspicuously around the country. But the 31-year-old was also careful to not be too public about his hobby, telling the Post that he did not post all the pictures of Putin's train online. He now lives in Sri Lanka, but told The Post that he is "ready to move around the world."

☆ Middle East pivot to Asia is strategic this time
▼ + stars: | 2023-03-14 | by ( Una Galani | ) www.reuters.com time to read: +6 min

Xi Jinping has brokered a deal the United States would have found hard to secure, despite its traditional military influence in the Middle East. The Middle East has trained its financial sights on Asia before. At current rates of growth, emerging Asia will become the top trade partner for the Gulf countries by 2028, per Asia House, surpassing advanced economies. As U.S.-China relations continue to sour, the Asian financial centre is looking to the Middle East to find new foreign companies to trade in the territory. Delegations from the two Middle East countries held talks in Beijing between March 6 and 10, the statement added.

☆ Sri Lanka needs institutional changes for long-term debt sustainability, says professor
▼ + stars: | 2023-03-10 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

Buddhika Weerasinghe | Bloomberg | Getty ImagesSri Lanka needs institutional reforms in order to achieve long-term debt sustainability, said Steve Hanke, who played a key role in establishing new currency regimes in emerging markets like Argentina and Montenegro. "In fact, most of the personalities involved in Sri Lanka at the high level are exactly the same as they've been for years. In September, the IMF outlined a series of steps that it wanted Sri Lanka's government to implement prior to loan approval, which included major tax reforms. "Debt relief from Sri Lanka's creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps," the fund said at the time. "The Secretary welcomed Sri Lanka's commitments to transparency and comparable treatment for all bilateral official and private creditors."

☆ Sri Lanka crisis: None of these IMF programs work, says Steve Hanke
▼ + stars: | 2023-03-09 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSri Lanka crisis: None of these IMF programs work, says Steve HankeSteve Hanke, professor of applied economics at Johns Hopkins University, says there's temporary relief but "tremendous recidivism" in the long run.

☆ Sri Lanka to announce debt restructuring strategy in April - cenbank chief
▼ + stars: | 2023-03-09 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +3 min

The bailout is the culmination of months of negotiations as Sri Lanka looks to emerge from its worst economic crisis in more than seven decades. Weerasinghe said the country would expedite negotiations with commercial creditors and announce the debt restructuring strategy in consultation with them, before finalising the debt restructuring terms. Currently, Sri Lanka has to repay about $6 billion annually until 2029, President Ranil Wickremesinghe told parliament on Tuesday, but Weerasinghe said this amount will be reduced post-debt restructuring. Sri Lanka also has a $1.5 billion swap arrangement with China but that can only be used if domestic reserves support three months of imports. Weerasinghe also said that inflation is likely to come down faster than earlier forecast, even by the central bank.

☆ Analysis: China paves Sri Lanka's way to IMF funds, but debt talks remain uncertain
▼ + stars: | 2023-03-08 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +4 min

Cash-strapped nations such as Zambia and Ghana are also facing talks on reworking debt with Chinese lenders, and Sri Lanka's negotiations showed that international efforts to standardize some debt rework parameters are failing. China is the biggest bilateral creditor to Sri Lanka, which defaulted on its international debt last year. Sri Lanka owed China's EXIM $4.1 billion, or 11% of the country's foreign currency debt, at the end of 2022, according to government data. Reuters GraphicsBOARD APPROVAL VS DEBT DEALAn executive board approval unlocks IMF financing, though it doesn't necessarily mean it will expedite debt talks. Once the executive board approval is secured, the IMF will publish Sri Lanka's debt sustainability analysis.

[1/2] Sri Lankan rupees are seen in a bowl at a vegetable vendor's shop amid the rampant food inflation, amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 29 , 2022. China has extended its "firm support to Sri Lanka through a debt treatment", EXIM Bank wrote in the letter to the Sri Lankan government on March 6. "Meanwhile, we would like to expedite the negotiation process with your side regarding medium- and long-term debt treatment in this window period, with a view to finalising the specifics of a debt treatment in the coming months. We will make our best efforts to contribute to the debt sustainability of Sri Lanka." The letter mirrors what EXIM Bank sent to Sri Lanka in January, except for the target of finalising debt-treatment specifics in the coming months.

[1/2] Sri Lankan rupees are seen in a bowl at a vegetable vendor's shop amid the rampant food inflation, amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 29 , 2022. China has extended its "firm support to Sri Lanka through a debt treatment", EXIM Bank wrote in the letter to the Sri Lankan government on March 6. "Meanwhile, we would like to expedite the negotiation process with your side regarding medium- and long-term debt treatment in this window period, with a view to finalising the specifics of a debt treatment in the coming months. We will make our best efforts to contribute to the debt sustainability of Sri Lanka." By end-2020, Sri Lanka owed EXIM $2.83 billion, or 3.5% of its external debt, according to IMF data.

☆ IMF board poised to approve $2.9 bln Sri Lanka bailout
▼ + stars: | 2023-03-07 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, March 7 (Reuters) - The International Monetary Fund on Tuesday said Sri Lanka had secured financing assurances from all its major bilateral creditors, paving the way for the IMF board to consider approval of a long-awaited $2.9 billion four-year bailout. Sri Lanka would get access to the first tranche of money shortly after board approval, sources close to the talks said. "Sri Lanka has now received financing assurances from all major bilateral creditors," Krishna Srinivasan, director of the IMF's Asia and Pacific Department (APD) said in a statement. Central bank Governor P. Nandalal Weerasinghe said last week that Sri Lanka had fulfilled its conditions with the rate hike and he was hopeful the IMF bailout would be approved this month. The IMF said the board's approval would help catalyze financing from other creditors, including the World Bank and the Asian Development Bank.

It was not clear what new support China, the world's biggest sovereign creditor, had extended to Sri Lanka on Monday. By end-2020, Sri Lanka owed the Export-Import Bank of China $2.83 billion or 3.5% of the island's external debt, according to IMF data. Sri Lanka needs to repay about $6 billion on average each year until 2029 and will have to keep engaging with the IMF, Wickremesinghe said. Countries in debt distress such as Zambia and Sri Lanka have faced unprecedented delays in securing IMF bailouts as China and Western economies have clashed over how to provide debt relief. Sri Lanka has been waiting for about 187 days to finalise a bailout after reaching a staff-level deal with the IMF.

☆ Sri Lanka expects approval of $2.9 billion IMF deal after China support
▼ + stars: | 2023-03-07 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +4 min

"Sri Lanka has completed all prior actions that were required by the IMF," Wickremesinghe said. It was not clear what new support China, the world's biggest sovereign creditor, extended to Sri Lanka on Monday. By end-2020, Sri Lanka owed the Export-Import Bank of China $2.83 billion or 3.5% of the island's external debt, according to IMF data. Sri Lanka needs to repay about $6 billion on average each year until 2029 and will have to keep engaging with the IMF, Wickremesinghe said. Sri Lanka has been waiting for about 187 days to finalise a bailout after reaching a staff-level deal with the IMF.

☆ With China's support, Sri Lanka expects nod for $2.9 bln IMF deal
▼ + stars: | 2023-03-07 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +4 min

"Sri Lanka has completed all prior actions that were required by the IMF," Wickremesinghe said. It was not clear what new support China, the world's biggest sovereign creditor, extended to Sri Lanka on Monday. By end-2020, Sri Lanka owed the China EximBank $2.83 billion or 3.5% of the island's external debt, according to IMF data. Sri Lanka needs to repay about $6 billion on average each year until 2029 and will have to keep engaging with the IMF, Wickremesinghe added. Sri Lanka has been waiting for about 187 days to finalise a bailout after reaching a staff-level deal with the IMF.

Sri Lanka's finance ministry and India's foreign ministry did not immediately respond to requests for comment. He said China, Sri Lanka's biggest lender, extended support for the IMF programme on Monday, clearing the way for the loan. The IMF said its board would meet on March 20 to review a preliminary staff-level agreement first signed with Sri Lanka in September. It said Sri Lanka had secured financing assurances from all major bilateral creditors. China and India are Sri Lanka's biggest lenders and both seek influence on the island located on a busy shipping route on the Indian Ocean.

☆ Sri Lanka says 'positive news' coming from IMF on $2.9 bln package
▼ + stars: | 2023-03-07 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, March 7 (Reuters) - Sri Lanka is on the verge of getting "very positive news" from the International Monetary Fund on a $2.9 billion programme, a government minister said on Tuesday, while a senior source said it had also won debt restructuring support from China. The island nation of 22 million is struggling with its worst economic crisis in more than seven decades. "Sri Lanka is on the verge of getting very positive news from the IMF," the junior finance minister, Shehan Semasinghe, told parliament. "The IMF programme is essential for us and Sri Lanka has worked very hard since last September to secure it." A senior Sri Lankan government official said the Export-Import Bank of China had written to the IMF supporting Sri Lanka's debt restructuring programme, which is critical to securing final approval for the loan.

☆ Sri Lanka's rate hike shows commitment to rapid disinflation - IMF
▼ + stars: | 2023-03-04 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, March 4 (Reuters) - Sri Lanka's decision to raise interest rates shows the crisis-hit country's commitment to reducing inflation quickly towards single-digit levels, the International Monetary Fund (IMF) said on Saturday. In a surprise move, the South Asia nation's central bank raised rates by 100 basis points on Friday to battle inflation, which is at 50.6%. The central bank raised its standing deposit facility rate to 15.50% and its standing lending facility rate to 16.50%, and said it would relax its currency band to move towards a market-determined exchange rate as it seeks to secure the bailout. The bank raised rates by 950 bps in the first half of last year to contain the country's financial crisis. Sri Lanka is pushing for finalisation of a four-year Extended Fund Facility and is expecting IMF board level approval this month, its central bank chief said on Friday.

The bank raised its standing deposit facility rate and standing lending facility rate by 100 basis points each to 15.50% and 16.50%, respectively, it said in a statement. The country is awaiting approval of a $2.9 billion IMF bailout package as it endures its worst financial crisis since independence from Britain in 1948. The central bank raised rates by a record 950 basis points last year to tame inflation and then kept them steady until Friday's 100 basis point increase. "There have been some differences between the CBSL and IMF staff on the inflation outlook," the Central Bank of Sri Lanka (CBSL) said in its statement. But depends on whether the market reads this as positive for getting IMF (bailout) in March."

☆ China urges global lenders' involvement in developing nations' debt
▼ + stars: | 2023-03-02 | by ( ) www.reuters.com time to read: +2 min

[1/3] Chinese Foreign Minister Qin Gang and India's Foreign Minister Subrahmanyam Jaishankar shake hands before the start of G20 foreign ministers' meeting in New Delhi, India, March 2, 2023. India's Ministry of External Affairs/Handout via REUTERSNEW DELHI, March 2 (Reuters) - Chinese Foreign Minister Qin Gang called on global financial institutions on Thursday to play an active role in restructuring the debt of developing countries. "China has put forth relevant initiatives under the G20," Qin said. "China has suspended more debt service payments than any other G20 member, and participated in the debt treatment under the Common Framework." Last week, China urged G20 nations to conduct a fair, objective and in-depth analysis of the causes of global debt issues and to "resolve the problem in a comprehensive and effective manner".

☆ Analysis: Cash-strapped countries face IMF bailout delays as debt talks drag on
▼ + stars: | 2023-03-02 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +7 min

IMF funding is often the sole financial lifeline available to countries in a debt crunch, and key to unlocking other financing sources, with delays putting pressure on government finances, companies and populations. Though staff agreements can be reached without financing assurances, the IMF board needs them to approve the programme. Chinese Premier Li Keqiang said on Wednesday the country is willing to "constructively" participate in solving debt problems of relevant countries under a multilateral framework. But Beijing has always emphasised all creditors should follow the principle of "joint action, fair burden" in debt settlements. Adding another layer of complexity to these debt talks, the Common Framework doesn't lay out precise rules on how a debt restructuring with bilateral creditors should work.

☆ Being a digital nomad isn't just for singles. Here's how families make it work
▼ + stars: | 2023-03-01 | by ( Chris Dwyer | ) www.cnbc.com time to read: +6 min

To many, the lifestyle of a "digital nomad" is an aspirational one — you can live anywhere in the world, visa permitting, with your laptop as your office. But one factor deters many from the lifestyle: kids. He added that now more resources exist to help people learn about the digital nomad lifestyle, thanks to its growing popularity. Elledge-Penner family: 20 countriesThe beautiful Indonesian island of Bali, famed for its laidback lifestyle, is a popular destination for digital nomads. Penner said the key to making the lifestyle work for them is "connecting with people" and not approaching places "as a travel highlight hit list."

☆ Whales are turning up dead on beaches — and our online shopping addiction is partly to blame
▼ + stars: | 2023-02-28 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +4 min

Nearly two dozen whales have washed up dead along the East Coast in recent months. Scientists blame it on climate change sending whales into the path of cargo ships. The surge in online shopping means ships are bigger and more plentiful than ever before. Two whales that washed up dead along the Atlantic Coast this month were determined to have been struck by vessels, USA Today reported. A year ago, scientists began calling for cargo ships to start rerouting in order to protect endangered blue whales that live off the coast of Sri Lanka.

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