$ 5 b potential savings due to int. payment reduction

Sri Lanka will save $5 billion through reduced interest payments on restructured bilateral debt, with an extended repayment period of 8 years, starting in 2028 and ending in 2043.

President Ranil Wickremesinghe announced that Sri Lanka will save $5 billion through reduced interest payments agreed with bilateral creditors, with an extended repayment period of 8 years. Speaking at Parliament, he noted that Sri Lanka has managed to significantly lower debt interest payments, maintaining rates at 2.1% or below, with repayments starting in 2028 and completing by 2043. Last week, agreements were signed with China Exim Bank and the Official Creditor Committee, involving the Paris Club and India, to restructure about $10 billion in bilateral debt. Wickremesinghe also mentioned ongoing discussions with bondholders, expecting to complete the debt treatment process soon, and will submit all restructuring agreements to the Committee on Public Finance for detailed analysis. After signing a Memorandum of Understanding (MoU), Sri Lanka can access bilateral loans and recommence suspended foreign-funded projects.

$ 5 b potential savings due to int. payment reduction | The Morning

The Morning

2024-07-03

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