China Backs Sri Lanka Debt Plan, Sources Say, Paving Way for IMF Loan
- Fund chief looking forward to presenting loan for approval
- Stocks, bonds and currency advance on bailout optimism
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The International Monetary Fund plans to decide on a $2.9 billion bailout for Sri Lanka after China gave assurances that it will support the nation’s debt restructuring, clearing the biggest hurdle for approval.
The IMF board will consider the loan on March 20 after China on Monday became the final creditor nation to confirm its participation. Fund staff and Sri Lanka agreed to the four-year deal in September, and the board typically backs the loan arrangements negotiated by staff.