The International Monetary Fund reported constructive talks with Sri Lankan authorities on Thursday, raising hopes it could soon grant preliminary approval for a credit facility to alleviate a crisis in which the country is struggling to pay for imports.
"The discussions will continue virtually with a view to reaching a staff-level agreement on the EFF arrangement in the near term," IMF said, referring to the credit arrangement, called an extended fund facility.
Staff-level agreement must precede final approval by the IMF's executive board, but so too must cooperation from Sri Lanka's creditors, which is not expected to come quickly.
"Because public debt is assessed as unsustainable, Executive Board approval would require adequate financing assurances from Sri Lanka's creditors that debt sustainability will be restored," the IMF said.
Analysts say debt restructuring would be a protracted process, even after IMF staff-level agreement.
Read Full Story .... Reuters >>> :
|Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.|