Ravi K claims another $ 4 b borrowing possible post-IMF deal

Tuesday, 7 June 2016 00:10 - - {{hitsCtrl.values.hits}}

Urges diaspora to deposit funds here for benefit of themselves and country

Finance Minister Ravi Karunanayake in a statement yesterday claimed that post-IMF deal, a further borrowing of $ 4 billion in funding was possible.

“On the strength of this recognition, we have the possibility to obtain nearly another four billion dollars loans and financial grants from international institutions such as World Bank and Asian Development Bank,” Karunanayake said.

He said that the IMF’s $ 1.5 billion Extended Fund Facility had been granted to be used in the event that there is a deficit to the DFT-1-RAVI balance of payment.

“However we can see that the IMF agreed to grant such a loan to Sri Lanka because it has recognised our country,” he added.

The IMF loan had been granted at a lower interest to enable Sri Lanka to recover its foreign reserves. “This will also help the country to maintain a stable monetary situation. At the same time, the IMF decision to grant this loan to Sri Lanka is an international certification to prove that the country is handling its economy correctly,” pointed out Minister Karunanayake.

The Finance Minister also urged Lankan expatriates in Europe and Japan who have deposited their money at lower interest to bring such money to Sri Lanka.

“We urge them to deposit their money in local banks and receive benefits particularly for themselves and country in general. Utilising all resources including the loans granted recently by Japan for development, we will be able to push the country forward very soon. We are building a strong economy, enabling all citizens to rise,” Karunanayake added.

He also noted that the Opposition was levelling various charges about the conditions that had been imposed by the IMF to grant these loans. “But no conditions have been imposed with regard to this loan. It delayed so long to grant this loan because it was granted free of conditions. They generally propose things that we should implement as a country. Proposals such as to cut unnecessary expenditure and increase the income are not conditions. The Rajapaksa Government obtained short-term commercial loans. We did not follow suit. We obtained loans at 0.1% interest, promising to repay them within 40 long years. This is the difference,” the Finance Minister claimed.