Sri Lanka, an impoverished Asian island nation, appealed to the International Monetary Fund (IMF) on Monday for urgent financial aid, according to the country’s finance minister, Ali Sabry.
The request, according to Sabry, was being considered by the global lender after initial reluctance to help the country.
A Sabry-led delegation has already begun formal talks with the IMF in Washington, D.C., for a program the government hopes will help supplement its reserves and attract bridge financing to pay for essential imports of fuel, food and medicine. .
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“The Minister of Foreign Affairs has requested a Rapid Financing Instrument (RFI) to alleviate the current supply chain problems, but the IMF is initially of the view that it does not meet its criteria,” the official said. Sabry’s assistant, Shamir Zavahir, on Twitter.
“However, India has subsequently made representations on a request for information for Sri Lanka as well and the IMF may consider this request due to the unique circumstances.
“The IMF seems to be in favor of providing an Extended Funding Facility, a longer facility of up to four years with easier and longer repayment terms.
“Ideally, if it can be accelerated, it can help stabilize things in the short term until long-term solutions kick in,” Zavahir added.
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