Home » France keeps all loans to SL on standby till the out come of debt restructuring talks

France keeps all loans to SL on standby till the out come of debt restructuring talks

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France, which is part of the Paris Club, is in talks with Sri Lanka’s creditors in an attempt to ensure a solution is reached for the financial crisis sooner than later in the wake of the third round of debt restructuring discussions with creditors.

The newly appointed French Ambassador to Sri Lanka, Jean-François Pactet, said that an immediate solution will be in the best interest of everyone, including Sri Lanka.

Pactet said that loans from France to Sri Lanka were placed on standby owing to Sri Lanka defaulting on its foreign debt.

Sri Lanka held the third meeting with its bilateral creditors on debt restructuring, State Finance Minister said, as the island nation’s $2.9 billion International Monetary Fund (IMF) loan has been delayed amid agreement among its creditors are yet to be seen.

Sri Lanka could not hold the third meeting with bilateral lenders scheduled for November 17 citing the creditors need some clarification before the next meeting.

The creditors include geopolitical rivals China and India. No country has so far fully agreed with any of the debt restructuring system, government sources have said.

“State Finance Minister Shehan Semasinghe said in a twitter message that they appreciate the progressive and constructive engagements. Further wish to reiterate that we will maintain an equal, comparable and transparent debt treatment policy.”

Government sources have said Sri Lanka is now eyeing January deadline for the IMF board approval to secure US $2.9 billion loan.

They say lack of consensus among Sri Lanka’s creditors over debt restructuring and some pending reforms in loss-making state owned enterprises (SOEs) have resulted in the delay.

Sri Lanka held its first meeting with bilateral creditors on October 14 and the second on November 03, though no consensus has been reached. President Ranil Wickremesinghe’s administration has said that it has been negotiating India and China for debt restructuring separately.

France, which is part of the Paris Club, is in talks with Sri Lanka’s creditors in an attempt to ensure a solution is reached for the financial crisis sooner than later.

The newly appointed French Ambassador to Sri Lanka, Jean-François Pactet, said that an immediate solution will be in the best interest of everyone, including Sri Lanka.

Pactet said that loans from France to Sri Lanka were placed on standby owing to Sri Lanka defaulting on its foreign debt.

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