Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said that the IMF is looking for ways to expand donor coordination to middle-income countries, such as Sri Lanka and the IMF is pressing for a more effective debt resolution mechanism.
“We are pressing for a more effective debt resolution mechanism. We want the Common Framework to become more predictable with guidelines and able to bring equality of treatment for all creditors, public and private. And we are also looking for ways in which we can expand that kind of donor coordination to middle-income countries, such as Sri Lanka,” she told reporters.
In September, Sri Lanka reached a staff-level agreement with the IMF for a loan of about $2.9 billion. This approval is a key step for countries to secure financing from Washington-based lenders.
But Sri Lanka still has to finalize how to restructure its heavy debt load before funds can be disbursed.