Sri Lanka is in talks with a financial institution to borrow at least ارب 3 billion through the International Monetary Fund (IMF) Extension ...
Sri Lanka is in talks with a financial institution to borrow at least ارب 3 billion through the International Monetary Fund (IMF) Extension Fund Facility (EFF).
According to a report in the Dawn newspaper by Reuters, informed sources said that the Sri Lankan government is expecting another round of technical talks with the IMF in early June and this month. Expect a staff-level agreement in the end.
However, an IMF spokesman did not immediately respond to a request for comment. Sri Lanka's finance minister and central bank have also declined to comment.
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For the first time since its independence in 1948, Sri Lanka called for a "rescue plan" to overcome the severe economic crisis.
Sri Lanka was unable to repay some of its foreign debts earlier this year and is making every effort to meet imports of basic necessities such as fuel and medicine.
According to the IMF website, the EFF program, which will be the 17th IMF plan for the nation, will require countries to carry out structural economic reforms to address fundamental weaknesses.
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Once the plan is approved, the program is usually three years and four and a half years with a grace period, during which time the loan repayment is initiated.
The 3 3 billion deal with the IMF would be about four times the country's quota.
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