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China Offers to Extend Sri Lanka’s Debt by 2 Years Over IMF Deal

China has reportedly offered Sri Lanka a two-year debt moratorium as “an immediate contingency measure” to support Sri Lanka in securing a $2.9 billion bailout package from the International Monetary Fund (IMF).
In a letter sent to Sri Lanka’s Finance Ministry on Jan. 19, the Export-Import Bank of China said that it would grant a delay on the debt service due in 2022 and 2023, as well as a suspension on loan interest repayment.
The letter states that Sri Lanka “will not have to repay the principal and interest due of the bank’s loans” during the two-year period, and the bank will support Sri Lanka’s application for an IMF program….

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