"We want to see an IMF program as quickly as possible. That is what Sri Lanka deserves, that is what Sri Lanka needs," Nuland added. (Reporting by Devjyot Ghoshal; Editing by Andrew Heavens and Christina Fincher)
(Adds background, quotes)
By Uditha Jayasinghe
COLOMBO, Feb 1 (Reuters) - The United States wants China
to provide credible and specific assurances to the International
Monetary Fund (IMF) along with other creditors to help Sri Lanka
unlock a $2.9 billion bailout, a senior U.S. diplomat said on
Wednesday.
Sri Lanka entered into a staff level agreement with the
global lender last September but needs financing assurances from
key bilateral lenders China and Japan before disbursements can
begin.
India, the third significant lender, dispatched its
financing assurances to the IMF last month. "What China has offered so far is not enough. We need to see
credible and specific assurances that they will meet the IMF
standard of debt relief," U.S. Under Secretary of State for
Political Affairs Victoria Nuland told reporters.
"We, the United States, are prepared to do our part. Our
Paris Club partners are prepared to do their part. India has
made strong commitments that it will provide the credible
assurances the IMF is looking for."
The Export-Import Bank of China has offered Sri Lanka a
two-year moratorium on its debt and said it would support the
country's efforts to secure an IMF program. Sri Lanka, an island of 22 million people, is caught in its
worst financial crisis since independence from Britain in 1948,
with soaring inflation, a recession and currency depreciation
over the last year.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.