IMF support, ‘not a bailout’ we need says CB Chief

Saturday, 23 June 2012 00:14 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka is looking for an extended fund facility from the International Monetary Fund after the current $2.6 billion loan program ends, the Central Bank of Sri Lanka said on Thursday.

An IMF mission last week said Sri Lanka had shown interest in further financial support.

“It is not a bailout package. The area (we’re) looking at is the extended fund facility,” Central Bank Governor Ajith Nivard Cabraal told Reuters in an interview.

“It is available to many countries which need not necessarily be in a balance of payments difficulty. Of course, it is still too early to say. But if we are going for a package, what we are talking about, the ideal situation would be the package should suit development activities also.”

The IMF may disburse the last tranche of around $420 million by July if it satisfied with the island nation’s economic performance, ending the current $2.6 billion loan program.

Cabraal said the central bank had been studying IMF facilities given to other countries.

“After this (ongoing) program is successfully completed, we will start discussions. Once we have got a clearer picture, we would be looking at the options of having some development also supported,” he said.

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