China to offer another loan to settle existing loans
China has said it does not prefer debt restructuring, but is ready to offer another loan to settle existing loans, says Cabinet Spokesperson & Minister Nalaka Godahewa today (April 26).
Addressing the weekly Cabinet Media Briefing said given the present crisis in Sri Lanka, the country needs around US $ 4 Billion to overcome the crisis.
“China’s position is that since it has offered loans to many countries, permitting debt restructuring for one country, it would affect the others. Therefore, they have proposed another loan to settle the existing loans. This is in the preliminary stage, and the Finance Minister will make deliberations to parliament in due course,” he said.
(Courtesy: News First)
Loan to settle existing loans, Madness! Better sell the rest of the country and the people as slaves to China.
I think after investing billions in SL assuming it was a normal country with normal people, China is trying to get some returns or cut even by preventing SL having to observe IMF conditions. But I thing China will have the bigger say on matter since the loans have been given before the IMF involvement. In other words, IMF require China’s agreement to debt restructuring.