IMF decision on ISB restructuring framework expected soon

The Ministry of Finance expects the IMF to confirm soon whether Sri Lanka's restructuring framework for International Sovereign Bonds (ISBs) complies with IMF programme parameters, following an early July agreement with the Ad Hoc Group of Bondholders that proposes a 28% haircut on face value and an 11% reduction on past interest, with payments beginning in September.

The Ministry of Finance expects the International Monetary Fund (IMF) to confirm within the next few days if Sri Lanka's framework agreement with its International Sovereign Bond (ISB) holders complies with IMF programme parameters. Treasury Deputy Secretary R.M.P. Rathnayake stated that the government reached a deal in early July with the Ad Hoc Group of Bondholders on restructuring ISBs, which was then submitted to the IMF for assessment. The IMF officials, not the Executive Board, must approve the compliance. Additionally, Sri Lanka needs the Official Creditor Committee's endorsement that the framework adheres to the principle of comparability of treatment. The agreed framework includes a 28% haircut on the face value and an 11% reduction on past interest, with payments starting in September.

IMF decision on ISB restructuring framework expected soon | The Morning

The Morning

2024-07-28

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