Official Creditor Committee confirms debt treatment deal with Sri Lanka
The Official Creditor Committee (OCC) has confirmed its agreement in principle on specific financing terms to restructure Sri Lanka’s debt in line with the parameters set in the IMF program, Sri Lanka’s Finance State Minister Shehan Semasinghe says.
Official Creditor Committee’s statement on the agreement:
Following the launch event in April 2023, 17 countries formally formed, on May 9, an Official Creditor Committee (OCC) co-chaired by India, Japan and France (as chair of the Paris Club) to respond to the Sri Lankan authorities’ request for a debt treatment. The committee includes India and Hungary in addition to Paris Club creditors. Since then, the OCC has engaged extensively with the Sri Lankan authorities, the IMF, the World Bank as well as China, and Sri Lanka’s private creditors.
The OCC and Sri Lanka agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF. This agreement will allow the IMF staff to present to the IMF Executive Board the first review of Sri Lanka’s EFF arrangement and open the way for approval of the second disbursement under the arrangement. The OCC commends the Sri Lankan authorities for their continuous efforts in implementing the reforms necessary for their country’s return to a sustainable path.
The OCC stands ready and looks forward to formalizing this agreement in the coming weeks in a Memorandum of Understanding with the Sri Lankan authorities. The OCC expects other bilateral creditors to consent to sharing, in a transparent manner, the information necessary for the OCC to evaluate comparability of treatment regarding their own bilateral agreement. The OCC also expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC.
These engagements will ensure that the overall debt treatment granted to Sri Lanka is consistent with the IMF program parameters.
Latest Headlines in Sri Lanka
- Debt owed by Pakistan, Sri Lanka and Bangladesh to China rise to record levels: Data May 11, 2024
- Sri Lanka welcomes over 800,000 tourists in May May 11, 2024
- Supreme Court postpones Diana Gamage’s party expulsion case May 10, 2024
- Ranil Wickremesinghe & Basil Rajapaksa continue political future talks May 10, 2024
- Mujibur Rahuman sworn in as MP May 10, 2024