Glad to see that the IMF is considering how to move forward with its program for Sri Lanka.
The IMF needs to be able to lend to countries that are in default and seeking a necessary restructuring.
bloomberg.com
The IMF needs to be able to lend to countries that are in default and seeking a necessary restructuring.
bloomberg.com
Holding up the IMF program (and depriving Sri Lanka of needed foreign exchange) while waiting for China to sort out its internal issues and offer credible financing assurances was just punishing Sri Lanka.
Of course, if China doesn't offer credible financing assurances, other creditors will need to find additional ways to protect against the risk that China waits until after the program to do a debt deal, and demands payment in full after others have made concessions.
There is one positive externality if the IMF moves forward: its debt sustainability assessment will be public, and its assumptions can be debated. There is a good chance that the IMF is letting all the creditors off a bit easy (even if its demands are a bit much for China EXIM)
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