- Title: Sri Lanka gains IMF's provisional agreement for $2.9 bln loan
- Date: 1st September 2022
- Summary: COLOMBO, SRI LANKA (SEPTEMBER 1, 2022) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** (MUTE) VARIOUS OF INTERNATIONAL MONETARY FUND (IMF) OFFICIALS ARRIVING FOR NEWS CONFERENCE AND TAKING THEIR SEATS IMF OFFICIALS SEATED (SOUNDBITE) (English) SENIOR IMF OFFICIAL, PETER BREUER, SAYING: "IMF staff and the authorities have reached staff-level agreement to support Sri Lanka's economic policies with a 48-month arrangement under the so-called extended fund facility of about 2.9 billion U.S. dollars. The arrangement is subject to the approval of IMF management and the IMF executive board in the period ahead and is contingent on the implementation of a number of so-called prior actions by the authorities, as well as receiving assurances from international partners, including bilateral and private creditors, on their financial commitments in support of the programme." (MUTE) NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) SENIOR IMF OFFICIAL, PETER BREUER, SAYING: "The objective of this fund-supported economic programme is to restore macroeconomic stability and debt sustainability, while at the same time protecting the vulnerable, safeguarding financial stability and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka's growth potential in the time ahead." JOURNALISTS AT NEWS CONFERENCE (SOUNDBITE) (English) SENIOR IMF OFFICIAL, PETER BREUER, SAYING: "This staff-level agreement is only the beginning of a long road ahead for Sri Lanka to emerge from the crisis. In this context, the authorities have already begun the reform process and it will be important to continue on this path with determination." JOURNALISTS AT NEWS CONFERENCE (SOUNDBITE) (English) SENIOR IMF OFFICIAL, PETER BREUER, SAYING: "Now, because Sri Lanka's debt is assessed to be unsustainable, debt relief from Sri Lanka's creditors will be required to ensure that sustainability. Having a path to restore that sustainability, so-called financing assurances, is necessary for approval by the IMF executive board. And additional financing from multilateral partners will be needed to close financing gaps." NEWS CONFERENCE IN PROGRESS VARIOUS EXTERIORS OF CENTRAL BANK OF SRI LANKA
- Embargoed: 15th September 2022 10:56
- Keywords: International Monetary Fund (IMF) Peter Breuer Sri Lanka debt economic crisis loan
- Location: COLOMBO, SRI LANKA
- City: COLOMBO, SRI LANKA
- Country: Sri Lanka
- Topics: Asia / Pacific,Government/Politics
- Reuters ID: LVA001199001092022RP1
- Aspect Ratio: 16:9
- Story Text:EDITORS PLEASE NOTE: SEE EDIT 0526-SRI LANKA-COLOMBO/CITYSHOTS 2022, FOR GENERIC BEAUTY SHOTS OF SRI LANKA'S CAPITAL COLOMBO
Sri Lanka has reached a preliminary agreement with the International Monetary Fund (IMF) for a loan of about $2.9 billion, the global lender said on Thursday (September 1), as the country seeks a way out its worst economic crisis in decades.
The agreement, which Reuters first reported on Wednesday (August 31), is subject to approval by IMF management and its executive board, and is contingent on Sri Lankan authorities following through with previously agreed measures.
"This staff-level agreement is only the beginning of a long road ahead for Sri Lanka to emerge from the crisis," senior IMF official Peter Breuer told reporters in Colombo. "The authorities have already begun the reform process and it will be important to continue on this path with determination."
IMF conditions for the loan also include receiving financing assurances from Sri Lanka's official creditors and efforts by the country to reach an agreement with private creditors.
Its programme, spread over four years, will aim to boost government revenue, encourage fiscal consolidation, introduce new pricing for fuel and electricity, hike social spending, bolster central bank autonomy and rebuild depleted foreign reserves.
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