March 20 (EUROPA PRESS) –
The International Monetary Fund (IMF) has announced on Monday an agreement with Sri Lanka for a loan of 3,000 million dollars (almost 2,800 million euros) that includes a package of reforms to be applied during a period of 48 months.
The IMF will immediately disburse 333 million dollars and “will catalyze financial support from other development partners,” the IMF said in a statement.
This agreement “seeks to restore Sri Lanka’s macroeconomic stability and the sustainability of its debt, mitigate the economic impact on the poorest and most vulnerable, safeguard the stability of the financial sector and strengthen governance and growth capacity,” he explained.
“Sri Lanka has been hit by a catastrophic economic and humanitarian crisis. The economy has significant problems stemming from previous vulnerabilities and policy mistakes that have led to the crisis and have been exacerbated by a series of external shocks,” added the IMF.
The Board of Directors of the IMF has approved in a meeting held this Monday this agreement that, according to the Sri Lankan Government, will allow them to access 7,000 million dollars in financing from the IMF, the International Financial Institutions (IFI) and other multilateral organizations.
“It is a historic milestone for the country to restore macroeconomic stability and achieve debt sustainability,” the Sri Lankan Presidency reported in a statement collected by the Sri Lankan news portal Adaderana.
Sri Lankan President Ranil Wickremesinghe has personally welcomed the announcement. “Never in Sri Lanka’s 75 years of independence have we experienced such a critical time for our economic future,” he said.
“I want to thank the IMF and other international partners for their support in getting the economy back on track in the long term through prudent fiscal management and an ambitious reform agenda,” he added.
Sri Lanka already agreed in September 2022 to another loan for 3,000 million dollars with declared objectives very similar to those of the new pact.
