Sri Lanka’s debt crisis: China risks losing out
Creditors including those based in China are likely to take a haircut from Sri Lanka’s debt restructuring.
JimMin
Creditors including those based in China are likely to take a haircut from Sri Lanka’s debt restructuring.
June 07, 2022
Creditors, including those based in China, risk suffering substantial losses from their loans to Sri Lanka, which has defaulted on some of its international debt obligations. The fallout is likely to be exacerbated by possible delays in debt restructuring, which the South Asian nation is negotiating with the support of the International Monetary Fund IMF.
On May 18, Sri Lanka defaulted on its international bonds for the first time, after failing to deliver on coupon payments within the 30-day grace period granted to its April 18 bond due date, said a Moody’s report. The international ratings agency assigned Sri Lanka a rating of Ca, indicative of a likely country...
¬ Haymarket Media Limited. All rights reserved.
FinanceAsia has updated its subscription model.
Registered readers now have the opportunity to read 5 articles from our award-winning website for free.
To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.
To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222
