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IMF seeks to expand donor coordination to countries like Sri Lanka
14 Oct, 2022
The International Monetary Fund? (IMF) is looking to expand donor coordination to countries like Sri Lanka.
IMF Managing Director Kristalina Georgieva said that the IMF is pressing for a more effective debt resolution mechanism.
“We want the G20 Common Framework to become more predictable, with clear guidelines and equality of treatment for all creditors, public and private. We are also looking for ways to expand that kind of donor coordination to middle-income countries, such as Sri Lanka,” she said.
She expressed these views at the Annual Meetings Press Conference held in Washington, DC.
An IMF mission led by Peter Breuer and Masahiro Nozaki visited Colombo from August 24 to September 1, 2022 to continue discussions on IMF support for Sri Lanka and the authorities? comprehensive economic reform program.
The IMF staff and the Sri Lankan authorities later reached a staff-level agreement to support Sri Lanka?s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about US$2.9 billion.
The objectives of Sri Lanka?s new Fund-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka?s growth potential.
Debt relief from Sri Lanka?s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps.?(Colombo Gazette)
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