IMF agrees to lend Sri Lanka $2.9 billion

Tags: International News

The International Monetary Fund (IMF) on 1 September approved a loan of $2.9 billion to Sri Lanka.

IMPORTANT FACTS -

• It has been extended for a period of four years with conditions on debt restructuring and action on corruption.

• This step has been taken after a week-long discussion between the IMF and Sri Lankan officials.

• The IMF mission was led by Peter Breuer and Masahiro Nozaki who were in Sri Lanka from 24 August to 1 September.

• The newly expanded facility will help Sri Lanka in restoring macroeconomic and debt stability.

• It will help in safeguarding financial stability, reducing corruption and unlocking Sri Lanka's growth potential.

• Sri Lanka is facing its worst economic crisis since its independence from Britain in 1948.

• It is going through a period of skyrocketing inflation, dollar shortage and devaluation of the local currency due to wrong financial decisions.

About International Monetary Fund (IMF) :

• The International Monetary Fund (IMF), a United Nations (UN) specialised agency, was established in 1944 at the Bretton Woods Conference to secure international monetary policies.

• The International Monetary Fund is an organisation with 189 member countries.

• First Deputy Managing Director- Geeta Gopinath

• Headquarters- Washington, D.C., U.S.

• Managing Director- Kristalina Georgieva

• Chief Economist - Pierre Olivier Gourinchas