IMF approves nearly $3bn bailout for Sri Lanka

[bluesky]

IMF approves nearly $3bn bailout for Sri Lanka

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 programme will enable it to access up to $7 billion in overall funding. The decision will allow an immediate disburse

thefinancialexpress.com.bd

IMF approves nearly $3bn bailout for Sri Lanka​

The International Monetary Fund (IMF) logo in Washington, US,
Mar 21, 2023 05:00 PM
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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 programme 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 programme with strong ownership for the reforms is critical," Georgieva said in a statement. EFF refers to the IMF's Extended Fund Facility.

She emphasised the need for "ambitious revenue-based fiscal consolidation."

"For the fiscal adjustments to be successful, sustained fiscal institutional reforms on tax administration, public financial and expenditure management, and energy pricing are critical," Georgieva said in the statement.

Sri Lanka's President Ranil Wickremesinghe looks on during an interview with Reuters at Presidential Secretariat, amid the country's economic crisis, in Colombo, Sri Lanka Aug 18, 2022. |REUTERS

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.

Wickremesinghe told the country's parliament earlier that there were signs the economy was improving, but there was still insufficient foreign currency for all imports, making the IMF deal crucial so other creditors could also start releasing funds.

The island nation aims to announce a debt-restructuring strategy in April and step up talks with commercial creditors ahead of an IMF review of a bailout package in six months, its central bank governor told Reuters earlier this month.

 

[SoulSpokesman]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

 

[Valar.]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

You Indians really do like dragging Pakistan into every thread, don't you?

 

[bluesky]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

I do not remember the exact number of times that Pakistan took loans from the IMF. It is probably 17 times. IMF wants the Pakistani govt to fulfill a few IMF conditions to get its loan this time.

But the GOP is unable to fulfill the conditions probably because its military does not agree to the conditions. So, the PM is seeking loans from China, SA, and Qatar. But, I believe these countries are giving only lip services and no concrete action.

They know very well the money will not be repaid and the govt will seek further loans. SL has fulfilled the IMF conditions and it will get loans from other international sources.

IMF knows Pakistan's military is the main source of waste money. While BD and SL are trusted by the IMF, Pakistan is not. At least, not yet so far.

In my personal opinion, Pakistan's taxation system is weak and rich families are not required to contribute.

 

[SoulSpokesman]

@bluesky

Neel Akash dada,

It is probably 17 times.

23. 17 is the number of the times the great Pakistani jarnail Mohammed Ghazni invaded India. That confused you maybe.

Regards

 

[mb444]

Why is this in BD thread?

 

[SoulSpokesman]

@mb444

For one thing this can help SL pay back loans taken from BD.

Regards

 

[ziaulislam]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

Not really
In case of Pakistan we aren't serious

 

[AA_]

Not really
In case of Pakistan we aren't serious

That’s what it seems to me as well. As for this Indian, he masks his trolling through what seems like “innocuous” comments.

 

[epebble]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

BTW, the 'Hindu economist' is also wiring $15.6 billion to Ukraine based on a request tweeted by Zelensky. What say you?

War-ravaged Ukraine and IMF agree on a $15.6-billion loan package

 

[bluesky]

@bluesky

I wonder why they are taking so much time in the case of Pak. I wont bu surprised if their Hindu economist Gita Gopinath was behind this mischief

Regards

Gita Gopinath alone cannot decide on the IMF loan policy. I suspect that Pakistan wants to get loans not return them and will ask for more every year.

IMF will be hooked by the mischievous politicians of Pakistan. This is why IMF does not extend money.

 

[epebble]

Gita Gopinath alone cannot decide on the IMF loan policy. I suspect that Pakistan wants to get loans not return them and will ask for more every year.

IMF will be hooked by the mischievous politicians of Pakistan. This is why IMF does not extend money.

It is not just Gopinath. The Sultans of Saudi Arabia, UAE and Qatar are also playing coy. Nobody wants to be the party left holding the bag when the inevitable happens.

 

[bluesky]

@mb444

For one thing this can help SL pay back loans taken from BD.

Regards

Some Londonwala Topi Mullah suggests the BD govt push SL very hard to get back its $200 million as if there is no tomorrow.

I wonder, what kind of religious school guy like him got an education. His philosophy is playing hardball against a destitute country.

I find no religious virtue in him except that he thinks 72 fairy ladies will be embracing him after death with open arms and legs.

What a fantastic idea for people lacking human qualities that other people are taught in their childhood!!!

 

[SoulSpokesman]

@epebble

BTW, the 'Hindu economist' is also wiring $15.6 billion to Ukraine based on a request tweeted by Zelensky. What say you?

The Hindu will do what his master, the gora saheb wnats him to do. This Hinduani economist is following the script.

Regards

 

[epebble]

@epebble

BTW, the 'Hindu economist' is also wiring $15.6 billion to Ukraine based on a request tweeted by Zelensky. What say you?

The Hindu will do what his master, the gora saheb wnats him to do. This Hinduani economist is following the script.

Regards

So, her discretion is bound by IMF rules, and she can't show favoritism, one way or other to anyone. That is, being a professional.