China's Exim Bank to support Sri Lanka's loan application to IMF - Spokesperson

COLOMBO (News 1st); China will continue to support relevant financial institutions in actively working out the debt treatment, said Chinese Foreign Ministry Spokesperson Wang Wenbin on Monday (20).

"The Export-Import Bank of China has already provided Sri Lanka with a letter to express support for its debt sustainability. The letter says that the Bank is going to provide an extension on the debt service due in 2022 and 2023, which means Sri Lanka will not have to repay the principal and interest due of the Bank’s loans during the above-mentioned period, so as to help relieve Sri Lanka’s short-term debt repayment pressure," he told a press conference.

According Foreign Ministry Spokesperson Wang Wenbin the Export-Import Bank of China would like to have friendly consultation with Sri Lanka regarding medium- and long-term debt treatment in this window period; and the Bank will make best efforts to contribute to the debt sustainability of Sri Lanka. 

The Export-Import Bank of China also noted that it will support Sri Lanka in its loan application to the IMF; in the meantime, the Bank will continuously call on commercial creditors (including the International Sovereign Bondholders) to provide debt treatment in an equally comparable manner, and encourage multilateral creditors to do their utmost to make corresponding contributions, he added.

China will continue to support relevant financial institutions in actively working out the debt treatment, he noted.

Export-Import Bank of China said that China will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development.