China says Export-Import Bank tentatively agrees with Sri Lanka on debt treatment

Wednesday, 11 October 2023 00:50 - - {{hitsCtrl.values.hits}}

China’s Foreign Ministry Spokesperson Wang Wenbin

Calls on multilateral institutions and commercial creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing

As an official creditor, the Export-Import Bank of China has tentatively agreed with Sri Lanka on the debt treatment.

“We are also glad to see that other creditors are having discussion with Sri Lanka as well over solutions to its debt issue,” said China’s Foreign Ministry Spokesperson Wang Wenbin told journalists in Beijing during his regular briefing yesterday.

“We will continue to support Chinese financial institutions in actively consulting with Sri Lanka. We are ready to 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. We call on multilateral institutions and commercial creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing,” he added.

During the briefing, CCTV posed the question: Sri Lanka’s debt restructuring is at a crucial stage. What help has China provided to the process? Has there been progress in bilateral debt treatment?

Wang Wenbin’s response was:

“As Sri Lanka’s friend and neighbour, China follows closely the difficulties and challenges facing the country. We have been doing what we can to assist in its economic and social development.

Since last year, China’s relevant financial institutions have been in close touch with Sri Lanka on the debt issue involving China, engaged in active bilateral consultations and provided a financing support document to Sri Lanka in a timely manner to help it obtain loans from the IMF.

“Chinese financial institutions have taken part in all the creditors’ meetings as an observer and maintained friendly communication with other creditors to share with them the progress of the debt treatment. In late September, as an official creditor, the Export-Import Bank of China tentatively agreed with Sri Lanka on the debt treatment. We are also glad to see that other creditors are having a discussion with Sri Lanka as well over solutions to its debt issue.”