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☆ Sri Lanka reaches deal on debt restructuring with bilateral creditors including China and France
▼ + stars: | 2024-06-27 | by ( ) www.cnbc.com time to read: +2 min

Sri Lanka's President Ranil Wickremesinghe announced a debt restructuring deal with countries including India, France, Japan and China in a televised address to the nation Wednesday. Sri Lanka President Media Division / Handout | Anadolu Agency | Getty ImagesSri Lanka's President Ranil Wickremesinghe announced a debt restructuring deal with countries including India, France, Japan and China in a televised address to the nation Wednesday. Furthermore, Sri Lanka will be able to repay all the loans on concessional terms, with an extended period until 2043. By 2022, Sri Lanka had to repay about $6 billion in foreign debt every year, amounting to about 9.2% of gross domestic product. The agreement would enable Sri Lanka to maintain debt payments at less than 4.5% of GDP between 2027 and 2032.

Persons: Ranil Wickremesinghe, Sri Lanka, Wickremesinghe Organizations: Sri, Sri Lanka President Media, Anadolu Agency, Getty, International Monetary Fund, China's Exim Bank Locations: India, France, Japan, China, Sri Lanka, Paris, Beijing, Sri Lankans

☆ U.S. Approves $500 Million for Bahrain Oil Project, Despite Opposition
▼ + stars: | 2024-03-14 | by ( Hiroko Tabuchi | More About Hiroko Tabuchi | ) www.nytimes.com time to read: +1 min

The Bahrain deal comes just months after the United States joined nearly 200 other nations in a promise to transition away from fossil fuels, the burning of which is dangerously overheating the planet. It also comes as Mr. Biden is working to shore up support from climate-minded voters as he runs for re-election. In February, plans to finance the Bahrain projects prompted two of the bank’s climate advisers to resign. The Bahrain project is one of several controversial overseas fossil fuel ventures that ExIm Bank is currently considering. Also being considered are a natural gas export project in Papua New Guinea and an offshore pipeline in Guyana, alongside some projects related to renewable energy like a zinc-lead mine in Greenland.

Persons: Biden, Biden’s Organizations: United States, ExIm Locations: Bahrain, Papua New Guinea, Guyana, Greenland

☆ Sri Lanka reaches debt restructuring deal with creditor nations - government source
▼ + stars: | 2023-11-29 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

"Sri Lanka has been informed of an agreement," the source, who did not want to be identified, said. The Sri Lanka president's office and the finance ministry did not immediately respond to requests for comment. Japan co-chairs the official creditor committee, together with France and India. China is Sri Lanka's largest bilateral creditor and is an observer in the group, steering clear of joining the group as a formal member. The ADB's funds are part of a $350 million special policy-based loan that was approved in May to support Sri Lanka.

Persons: Nandalal Weerasinghe, Takafumi Kadono, Sudipto Ganguly, Jacqueline Wong, Kim Coghill Organizations: Reuters, Export, Import Bank of China, International Monetary Fund, Asian Development Bank, World Bank, ADB, Thomson Locations: COLOMBO, Sri Lanka, Japan, France, India, China, Sri Lanka's, Colombo, Sri

☆ Creditor Nations Likely to Agree on Sri Lanka Debt Restructuring - Report
▼ + stars: | 2023-11-28 | by ( Nov. | At P.M. | ) www.usnews.com time to read: +1 min

TOKYO (Reuters) - A group of Sri Lanka's creditor nations are likely to reach an agreement on debt relief and an extension of repayment deadlines for the South Asian nation, Japan's Jiji News reported on Wednesday, without naming a source or giving any details. China is Sri Lanka's largest bilateral creditor and has steered clear of joining this group as a formal member. Mired in its worst financial crisis in decades, Sri Lanka has been trying to reach restructuring deals with creditors since last year. The agreement with the group of creditor nations came about a month after the debt-ridden island nation reached a deal with the Export-Import Bank of China covering about $4.2 billion of outstanding debt. In so doing, Colombo is also seeking to receive more clarity on its debt restructuring talks with key bilateral creditors.

Persons: Tetsushi Kajimoto, Chang, Ran Kim, Miral Organizations: South, Jiji, Export, Import Bank of, International Monetary Fund Locations: TOKYO, Japan, France, India, China, Sri Lanka's, Sri Lanka, Import Bank of China, Colombo

☆ Uganda to borrow $150 mln from China's Exim after World Bank halts funding
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +1 min

A worker is seen near a sign of the Export-Import Bank of China at the venue for the second China International Import Expo (CIIE) in Shanghai, China October 31, 2019. REUTERS/Stringer/File Photo Acquire Licensing RightsKAMPALA, Nov 27 (Reuters) - Uganda is preparing to borrow $150 million from China's Export Import Bank (Exim) to help expand its internet infrastructure, the finance ministry on Monday. A junior finance minister and the minister for information asked lawmakers on Monday to authorise the debt, the finance ministry wrote on X, the social media platform. Uganda is in negotiations with Chinese export credit agency SINOSURE and Exim Bank for a loan to finance the construction of a pipeline to help Uganda export its crude oil to international markets. The World Bank, traditionally Uganda's biggest development lender, halted loans to Uganda after President Yoweri Museveni signed the Anti-Homosexuality Act which hands out tough sentences including death for a range homosexual activities.

Persons: Stringer, SINOSURE, Yoweri Museveni, Elias Biryabarema, Hereward Holland, William Maclean Organizations: Export, Import Bank of China, China, REUTERS, Rights, China's Export Import Bank, World Bank, Exim Bank, Bank, Thomson Locations: Shanghai, China, Rights KAMPALA, Uganda

☆ Fiji PM: China likely to collaborate on key port, shipyard project
▼ + stars: | 2023-11-22 | by ( Kirsty Needham | ) www.reuters.com time to read: +4 min

REUTERS/Lincoln Feast/File Photo Acquire Licensing RightsSYDNEY, Nov 22 (Reuters) - Fiji Prime Minister Sitiveni Rabuka told parliament on Wednesday the Pacific Islands nation was likely to collaborate with China on a key port modernisation and shipyard project, after discussing it in a meeting with Chinese president Xi Jinping. Fiji previously sought Australia's involvement to build a modern ship-building facility at Lautoka, officials and a consultant to Rabuka on the project told Reuters. Rabuka told Fiji's parliament on Wednesday his government was focused on upgrading infrastructure, "particularly the modernisation of port facilities and shipyards". An Australian-based ship design company said Rabuka had earlier sought the involvement of Australia, Fiji's largest aid donor, in the shipyard project. China has been pushing for greater security and trade ties with Pacific Islands countries.

Persons: Sitiveni Rabuka, Xi Jinping, Rabuka, Xi, Stuart Ballantyne, Ballantyne, Vajira Piyasena, Kirsty Needham, Lincoln, Edwina Gibbs Organizations: REUTERS, Lincoln, Rights, Fiji Prime, Wednesday, Reuters, APEC, Wednesday Fiji, Fiji Ports, Fiji Ships, Heavy Industry, Pacific, Thomson Locations: Fiji, Suva, China, Lautoka, Australia, San Francisco, Australian, tradespeople, Pacific, Solomon Islands, United States, Papua New Guinea

☆ Environmental groups urge funding halt for TotalEnergies' Mozambique project
▼ + stars: | 2023-11-17 | by ( Wendell Roelf | ) www.reuters.com time to read: +3 min

TotalEnergies signs are seen at a petrol station in Nice, France, October 10, 2022. The letter, seen by Reuters, comes at a crucial juncture for the French energy company as it prepares to relaunch Africa's largest foreign direct investment project. Activists warn the project may worsen climate change and fuel human rights abuses in the impoverished southern African nation. TotalEnergies said before Friday's letter that arrangements for project finance remain in place despite a 'force majeure' halt in 2021 when Islamist militants threatened the project site. The project delay has led some investors to reassess their previous cost assumptions in light of inflation and global gas market swings.

Persons: Eric Gaillard, Banks, TotalEnergies, Ntshengedzeni Maphula, Reta Jo Lewis, Wendell Roelf, Toby Sterling, Nellie Peyton, Forrest Crellin, Mathieu Rosemain, Yuka Obayashi, Tim Cocks, Olivia Kumwenda, Elaine Hardcastle Organizations: REUTERS, Reuters, ActionAid International, Greenpeace, African Development Bank, Societe Generale, Africa's Export Credit Insurance Corporation, Thomson Locations: Nice, France, Mozambique, Greenpeace France, Netherlands, U.S, Exim, Cape Town, Amsterdam, Johannesburg, Paris, Tokyo

☆ China's Xi Jinping commits to more investments in Nigeria
▼ + stars: | 2023-10-19 | by ( Felix Onuah | ) www.reuters.com time to read: +2 min

It added that another $4 billion worth of letters of intent was received for new projects and investments in different sectors of the economy. Nigeria also signed contracts with China Harbour Engineering Company for the construction of the Lekki Blue Seaport in Lagos. Shettima met Xi, who asked for the protection of Chinese workers in Nigeria, according to the vice president's office. China had committed to rail projects in Nigeria in the past and to a seaport in Bonny Island in the Niger Delta. China had earlier agreed to provide 85% of the financing for the rail projects.

Persons: Xi Jinping, Edgar Su, Kashim Shettima's, Shettima, Xi, Felix Onuah, Chijioke Ohuocha, Jamie Freed Organizations: Initiative, of, People, REUTERS, Rights, Nigeria's National Agency for Science, Engineering Infrastructure, China Harbour Engineering Company, China Exim Bank, Thomson Locations: Beijing, Rights ABUJA, Nigeria, Africa's, Lagos, China, Bonny Island, Niger, Nigeria's

☆ IMF says Sri Lanka debt talks ongoing, unaware of specific deals
▼ + stars: | 2023-10-11 | by ( Jorgelina Do Rosario | Thomson Reuters | Jorgelina Do Rosario Is Emerging Markets Correspondent At Reuters Based In London | ) www.reuters.com time to read: +3 min

A general view of the main business district as rain clouds gather above in Colombo, Sri Lanka, November 17, 2020. Peter Breuer told Reuters on the sidelines of the World Bank IMF annual meetings in Marrakech that talks between Sri Lanka and all its creditors were ongoing. "We will need to assess the entire package of agreements in its totality to assess consistency with IMF debt targets," Breuer said. Sri Lanka, mired in its worst economic crisis in 70 years, is in debt restructuring talks with a range of creditors, including China, its largest single creditor. Sri Lanka owed Exim $4.1 billion, or 11% of it foreign currency debt, at the end of 2022.

Persons: Dinuka, Peter Breuer, Breuer, Ranjith Siyambalapitiya, Jamie Fallon, Rosario, Libby George, Karin Strohecker, John Stonestreet, Nick Macfie Organizations: REUTERS, Rights, Monetary Fund, Sri, Reuters, World Bank IMF, Export, Import Bank of, Paris Club, Tellimer Research, Thomson Locations: Colombo, Sri Lanka, Rights MARRAKECH, China, Marrakech, Import Bank of China, Japan, India, France

☆ Investing in Space: Industry enters new era with tight funding and SpaceX dominance
▼ + stars: | 2023-09-14 | by ( Michael Sheetz | In Michaeljsheetz | ) www.cnbc.com time to read: +5 min

CNBC's Investing in Space newsletter offers a view into the business of space exploration and privatization, delivered straight to your inbox. BogeymanSpaceX feels a bit like Voldemort here: Whether it's the launch or satellite communications markets, SpaceX's dominance was a hot topic. While the company hasn't made any claims yet, the insurance market ramifications are looming. Because I think the one issue that creates dysfunction in this insurance market is … do you have enough volume to make up for this loss? … They're trying to figure out what 2024 is going to hold."

Persons: CNBC's Michael Sheetz, SpaceX's Starlink, Uninsurable, hasn't, Here's, they've, … They're, –, Jonathan Baliff, Henry Dubois, Adam Spice, EXIM, Judith Pryor, Pryor, there's Organizations: SpaceX, We're Locations: Paris, U.S

☆ U.S. export credit agency is working through $5 billion pipeline of space financing, vice chair says
▼ + stars: | 2023-09-11 | by ( Michael Sheetz | In Michaeljsheetz | ) www.cnbc.com time to read: +1 min

PARIS – The U.S. export credit agency is working through a $5 billion pipeline of applications related to the space industry, as companies look to fund projects in orbit in a tighter capital market. The Export-Import Bank of the United States, or EXIM, is no stranger to financing space projects such as satellite and rocket products. EXIM generally sees more applications during tougher economic times, as the previous bulk of its financing for the space sector came between 2010 and 2015. EXIM has helped U.S. space companies win contracts for foreign entities, especially to give an extra edge when they are competing with China. The bank acts as an alternative lender to support U.S. companies and examines "each individual transaction on its own merits" rather than focus on specific areas of the space industry, Pryor said.

Persons: Judith Pryor, EXIM's, EXIM, Pryor Organizations: PARIS, Import Bank, China Locations: The U.S, United States, U.S

"Chinese Exim bank rolled over principal amounts totalling $2.4 bln which are due in next 2 fiscal years," he said in a post on messaging platform X, formerly known as Twitter. "Pakistan will make interest payments only over the next two years," Dar said, meaning the wavier is only for the principal loan amount. "In principle, China and Pakistan have close cooperation in economic and financial sectors, and we will continue to advance cooperation with Pakistan to support the country in achieving stability and development," Chinese Foreign Ministry spokesperson Mao Ning said. The IMF team this month met the leadership of all political parties, including former Prime Minister Imran Khan, to seek a continuation of its bailout objectives irrespective of who comes to power. Reporting by Asif Shahzad; Additional Reporting by Andrew Hayley in Beijing; Editing by Tom Hogue and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Persons: Ishaq Dar, Dar, Mao Ning, Shehbaz Sharif, Imran Khan, Asif Shahzad, Andrew Hayley, Tom Hogue, Christopher Cushing Organizations: Pakistan Finance, Reuters, Foreign Ministry, Longtime, Beijing, Initiative, International Monetary Fund, United, United Arab Emirates, IMF, Thomson Locations: Islamabad, Pakistan, ISLAMABAD, China, Saudi Arabia, United Arab, Beijing

☆ Solomon Islands signs China policing deal in upgrade of ties
▼ + stars: | 2023-07-10 | by ( ) edition.cnn.com time to read: +4 min

China and the Solomon Islands on Monday signed a deal on police cooperation as part of an upgrade of their relations to a “comprehensive strategic partnership,” four years after the Pacific nation switched ties from Taiwan to China. “In just four years, the relationship between China and the Solomon Islands has developed rapidly, and we can now say that it is very fruitful,” Li told Sogavare. China will continue to provide assistance to the Solomon Islands to enhance its law enforcement capacity, according to a joint statement released by China’s state-run Xinhua news agency. China has long supported so-called South-South cooperation, which refers to cooperation between developing nations as equals for mutual benefit. Chinese telecoms giant Huawei is already building a cellular network in the Solomon Islands, financed by a $66 million Chinese EXIM bank loan.

Persons: ”, Manasseh Sogavare, Premier Li Qiang, Sogavare, Solomon, ” Li, Washington “, ’ Sogavare, Xi Jinping, ” Xi, Xi Organizations: Solomon Islands, Premier, “, US National Security Council, Xinhua, Huawei, “ Sports, Pacific Games Locations: China, Solomon Islands, Pacific, Taiwan, Beijing, United States, Australia, Taipei, Solomon, Japan, Britain, Honiara

☆ China, Solomon Islands sign policing pact in upgrade of ties
▼ + stars: | 2023-07-10 | by ( ) www.reuters.com time to read: +5 min

[1/3] Flags of Solomon Islands and China flutter near the Tiananmen Gate in Beijing, China July 11, 2023. "In just four years, the relationship between China and the Solomon Islands has developed rapidly, and we can now say that it is very fruitful," Li told Sogavare. The official added that the U.S. was committed to a strong relationship with the region and strengthening longstanding bonds with the people of Solomon Islands. Xi told Sogavare China supports more of its firms investing in the Solomon Islands and will continue to provide economic and technical assistance "without political strings attached". Chinese telecoms giant Huawei is already building a cellular network in the Solomon Islands, financed by a $66 million Chinese EXIM bank loan.

Persons: Florence Lo, Xi, Manasseh Sogavare, Premier Li Qiang, Sogavare, Solomon, Li, Washington, China's, Xi Jinping, Ethan Wang, Ella Cao, Ryan Woo, Kirsty Needham, David Brunnstrom, Himani Sarkar, Robert Birsel, Mark Heinrich, Lincoln Organizations: REUTERS, Solomon Islands, Beijing, BEIJING, Premier, U.S . National Security Council, China's, Xinhua, Huawei, Pacific Games, Thomson Locations: of Solomon Islands, China, Beijing, Florence, Taiwan, Solomon Islands, Pacific, United States, Australia, U.S, Solomon, Japan, Britain, Honiara, Sydney, Washington

☆ Solomon Islands leader visits security partner China with focus on infrastructure
▼ + stars: | 2023-07-09 | by ( Kirsty Needham | ) www.reuters.com time to read: +3 min

SYDNEY, July 9 (Reuters) - Solomon Islands Prime Minister Manasseh Sogavare arrives in China on Sunday for his first visit since striking a security deal, pledging to "remain neutral" amid rising China-U.S. competition and prioritise his nation's development needs. Western analysts said Sogavare would be feted after signing the security pact that alarmed Washington and some Pacific Islands neighbours including Australia last year. China's foreign ministry said China and the Solomon Islands had "contributed to peace, stability and development in the region", and the two countries leaders would discuss international and regional issues. China has constructed the stadium, is advising on security, and will train 80 Solomon Islands athletes arriving in China this week. Solomon Islands has one of the closest relationships with China in the region, said Meg Keen, director of the Lowy Institute's Pacific Islands program.

Persons: Manasseh Sogavare, Sogavare, Graeme Smith, Meg Keen, Lowy, Kirsty Needham, Kim Coghill Organizations: SYDNEY, Solomon Islands, Papua New, Huawei, Pacific Games, Solomon, Australian National University, Thomson Locations: Solomon, China, U.S, Washington, Australia, Papua, Papua New Guinea, Britain, Honiara, Chinese, Honiara's, Beijing, Jiangsu, Guangdong, India, Gulf, Taiwan, Pacific, Japan

The Alberta Industrial Heartland, a not-for-profit organization consisting of five Alberta municipalities, and the Hong Kong-based private equity firm Can-China Global Resource Fund (CCGRF) had announced their partnership in 2016 to encourage investments across North America. "This partnership no longer exists," Karlee Conway Director Communications of the Alberta Industrial Heartland said in an email response to Reuters. The lead investor of the fund was China's Export-Import Bank, Vancouver-based mining firm Hunter Dickinson and Swiss commodity trader Mercuria. While all three were released in 2021, the relationship between China and Canada has not returned to normal. The oil-rich province of Alberta exported C$4.5 billion worth of goods to China in 2020, making it the Canadian province's second-biggest export market.

Persons: Karlee, Hunter Dickinson, Lynette Ong, FROSTY, Meng Wanzhou, Divya Rajagopal, Xie Yu, Denny Thomas, Nick Zieminski Organizations: Reuters, The, The Alberta Industrial Heartland, China Global Resource Fund, Karlee Conway, Communications, Alberta Industrial Heartland, China's, Import Bank, MEC Advisory Ltd, EXIM Bank, Science, University of Toronto, CQ Energy, Ottawa, Huawei, Canadian, Exim Bank, Asian Infrastructure Investment Bank, Chinese Communist Party, Thomson Locations: TORONTO, HONG KONG, Alberta, The Alberta, Hong Kong, China, North America, Vancouver, Swiss, Canada, Ottawa, Calgary, Beijing, United States

TORONTO/HONG KONG, June 29 (Reuters) - The Alberta government has ended a partnership with a Chinese private equity fund that targeted $10 billion to invest in the natural resources sector, a spokesperson for the Alberta entity told Reuters. The Alberta Industrial Heartland, a not for profit organization of the province of Alberta, and the Hong Kong-based private equity firm Can-China Global Resource Fund (CCGRF) had announced their partnership in 2016 to encourage investments across North America. "This partnership no longer exists," Karlee Conway Director Communications of the Alberta Industrial Heartland in an email response to Reuters. The lead investor of the fund was China's Export-Import Bank, Vancouver-based mining firm Hunter Dickinson and Swiss commodity trader Mercuria. This month, Canada froze ties with the China-led Asian Infrastructure Investment Bank (AIIB) as it launched a probe into allegations that the institution was dominated by the Chinese Communist Party.

Persons: Karlee, Hunter Dickinson, Meng Wanzhou, Divya Rajagopal, Xie Yu, Denny Thomas, Nick Zieminski Organizations: Reuters, The, The Alberta Industrial Heartland, China Global Resource Fund, Karlee Conway, Communications, Alberta Industrial Heartland, China's, Import Bank, MEC Advisory Ltd, EXIM Bank, CQ Energy, Ottawa, Huawei, Canadian, Exim Bank, Asian Infrastructure Investment Bank, Chinese Communist Party, Thomson Locations: TORONTO, HONG KONG, Alberta, The Alberta, Hong Kong, China, North America, Vancouver, Swiss, Canada, Calgary, Beijing, United States

☆ Kamala Harris announces Tanzania trade boost during Africa tour
▼ + stars: | 2023-03-30 | by ( Nuzulack Dausen | ) www.reuters.com time to read: +4 min

[1/4] U.S. Vice President Kamala Harris talks to her Tanzanian counterpart Philip Mpango as she arrives in Tanzania, the second stop of a three-nation tour of Africa, at the Julius Nyerere Airport in Dar es Salaam, Tanzania March 29, 2023. "Working together, it is our shared goal to increase economic investment in Tanzania and strengthen our economic ties," Harris said, listing a number of initiatives. China has invested heavily in Africa in the last two decades, and last November the Tanzanian president met China's President Xi Jinping during a state visit to Beijing. Under Hassan, Tanzania has returned to international engagement after a period of isolationism enforced by her predecessor John Magufuli, who cancelled all his ministers' foreign trips and discouraged travel. "Madam President, under your leadership Tanzania has taken important and meaningful steps and President Joe Biden and I applaud you," Harris said, standing alongside Hassan.

☆ 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."

☆ 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.

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