The Paris Club offers guarantees to support an IMF plan for Sri Lanka

The Sri Lankan President’s Office said on Tuesday that the Paris Creditors Club had provided funding guarantees to support the International Monetary Fund’s approval of a funding extension for Sri Lanka.

The guarantees are needed to complete a $2.9 billion bailout for Sri Lanka from the International Monetary Fund, which is still in pending approval by the Board of the Fund.

The Paris Club said in a statement that its members, as well as several countries, including Saudi Arabia, look forward to working together with all bilateral creditors and other interested parties to proceed with such a debt restructuring as soon as possible.

The informal group of creditors said in a separate statement today, Tuesday: “Members of the Paris Club, as well as Hungary, Saudi Arabia and India, continue to look forward to working together with all bilateral creditors and engaging with other key stakeholders to move forward with similar restructuring of the due as soon as possible”. Time available”.

Reuters had reported in precedence on Paris Club loan guarantees, which includes Japan, Sri Lanka’s second largest bilateral lender.

The Paris Club statement said that its members, together with Hungary, expressed their full commitment to negotiating with Sri Lanka on the terms of the restructuring and, while Saudi Arabia supported the process, “recognized the importance of providing financial guarantees in the near future.”

The island of 22 million people reached an initial deal with the International Monetary Fund in September, but so far no money has been disbursed as the bailout plan needs to be approved by the IMF’s board.

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