{"id":11358,"date":"2023-04-15T20:05:39","date_gmt":"2023-04-15T20:05:39","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/exclusive-sri-lankas-bondholders-sent\/"},"modified":"2023-04-15T20:06:17","modified_gmt":"2023-04-15T20:06:17","slug":"exclusive-sri-lankas-bondholders-send","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/exclusive-sri-lankas-bondholders-send\/","title":{"rendered":"Exclusive-Sri Lanka’s bondholders send debt rework proposal to government, sources say"},"content":{"rendered":"

By Jorgelina do Rosario and Rodrigo Campos<\/p>\n

WASHINGTON (Reuters) -A committee of Sri Lanka’s international private creditors sent its first debt rework proposal to the country’s authorities regarding more than $12 billion in bonds outstanding, according to three sources with direct knowledge of the matter.<\/p>\n

It is the first bondholder proposal after the island nation of 22 million people defaulted on its debt a year ago. It marks a first formal step to engage with the country’s authorities, said one of the people, who asked not to be named because discussions are private.<\/p>\n

Details of the proposal were not immediately available.<\/p>\n

Representatives for the government did not respond to a request for comment. A spokesperson representing the creditor committee declined to comment.<\/p>\n

The group of about 30 creditors includes global investment companies Amundi Asset Management, BlackRock, HBK Capital Management and T. Rowe Price Associates.<\/p>\n

Bondholders and government officials met in Washington this week, with legal and financial advisers for both sides present, two sources said.<\/p>\n

Separately, the Paris Club of creditor governments said on Friday it aims to start negotiations to restructure Sri Lanka’s bilateral debt after a committee was set up by French, Japanese and Indian finance ministers, and representatives of Sri Lanka.<\/p>\n

China, Sri Lanka’s biggest bilateral creditor, did not join the announcement even though it holds the key to solving debt woes for some low- and middle-income countries.<\/p>\n

“If we can cooperate, if we can equally and fairly share the burden, I think we can solve the problem,” People’s Bank of China Governor Yi Gang said in a seminar during the International Monetary Fund and World Bank spring meetings in Washington, when asked whether China could join a Japan-initiated common platform to coordinate restructuring of Sri Lanka’s debt.<\/p>\n

After the COVID-19 pandemic that ruined the tourist sector, a spike in prices of imports following the start of the war in Ukraine, and economic mismanagement, Sri Lanka fell into its worst financial crisis in more than seven decades.<\/p>\n

The country secured last month a $2.9 billion program from the IMF to tackle its huge debt burden.<\/p>\n

(Reporting by Jorgelina do Rosario and Rodrigo Campos; additional reporting by Leika Kihara; editing by Sandra Maler, Leslie Adler and Paul Simao)<\/p>\n

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