Paris Club Backs Sri Lanka Debt Plan to Help Unlock IMF Deal
- Move brings island nation closer to $2.9 billion loan program
- China has only indicated willingness to support debt recast
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The Paris Club of creditors formally supports debt restructuring for Sri Lanka, bolstering the bankrupt nation’s efforts to unlock a $2.9 billion bailout from the International Monetary Fund, according to people familiar with the discussions.
The IMF received the assurance from the informal group — comprising mostly rich, western bilateral creditors — in recent days, according to the people who asked not to be identified because they didn’t have permission to speak publicly. One of them said that the Paris Club drafted a communique last week.