crisis: Last News

Changes necessary for debt restructuring – IMF Chief

COLOMBO (News 1st) – IMF chief Kristalina Georgieva told Reuters Next on Friday (2) that changes to the G20 Common Framework on debt restructuring were needed to speed up debt treatments, freeze debt service payments once a country requested help, and open the process to middle-income countries like Sri Lanka."We are concerned that there is a risk for confidence in debt resolution to be eroded at a time when the level of debt is very high," Georgieva said."We don't see at this point … a risk of a systemic debt crisis," she said, adding that countries in debt distress were not large enough to trigger a crisis that would threaten financial stability.Source: Reuters

.. crisis Reuters

Kristalina Georgieva

www.newsfirst.lkwww.newsfirst.lk

Related News

Kristalina Georgieva - IMF’s Georgieva to press for quicker action on debt relief with China - newsfirst.lk - China - city Beijing
newsfirst.lk
37%
904
IMF’s Georgieva to press for quicker action on debt relief with China
(Reuters) – International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that she will travel to Beijing next week with heads of other international institutions to press for quicker action on debt relief for poor and developing countries.The meetings with the country's leadership will focus on China's economic, COVID-19 and debt relief policies and will include officials from China Development Bank and the Export-Import Bank of China, the IMF said."This is the first time, hopefully, we will be able to sit together and discuss the very pressing issues that China, and the world are faced with," Georgieva told the Reuters NEXT conference.Georgieva said that during the Beijing meetings she intends to discuss ways to accelerate China's participation in debt relief for poor and developing countries as the world's largest official bilateral creditor."I am very hopeful that when we have a chance next week to discuss these issues, we will continue on a path of finding better solutions and strengthening the capacity of the common framework to deliver," she said, referring to G20 countries' slow-to-launch common debt restructuring framework.World Bank President David Malpass told the conference that he would join the discussions in Beijing, along with officials from the World Trade Organization, Organization for Economic Cooperation and Development and others.Georgieva and Malpass have both called for reforms of the common framework to offer heavily indebted countries a freeze in debt service payments when they apply for debt relief and clearer timelines for reaching agreement on debt treatments.Asked if China's slowing growth would limit its appetite for agreeing to debt reductions, Georgieva said she hoped
Child-friendly framework must fit 2022, not the 80s – UNICEF - newsfirst.lk - Sri Lanka
newsfirst.lk
82%
737
Child-friendly framework must fit 2022, not the 80s – UNICEF
COLOMBO (News 1st) – UNICEF says in order to prevent a child protection crisis in Sri Lanka, there needs to be a generation of data on the types of violence against girls and boys, the locations, the perpetrators and the accessibility of services. This will help improve the planning and implementation of programmes to prevent and respond to child protection issues.It added that a child-friendly legal framework, that is fit for Sri Lankan children in 2022, rather than laws drafted 80 years ago during the colonial period that far pre-date the ratification of the Convention on the Rights of the Child, is necessary.The principles of best interests and participation need to be brought into new legislation that provides the possibility for prevention, including family strengthening and ensures that all forms of institutionalization and detention of children are the last resort and for the shortest possible time.UNICEF also said that a  strong social service and justice workforce – who work together – to better protect children in Sri Lanka, needs to be forced and to this end, the government should prioritize the development and planning of a professional social service and justice workforce. It also needs to invest in training and supervision of the workforce, as well as clear definitions of roles and responsibilities.The Ministries and their Departments, the Police and the Judiciary should establish regular coordination mechanisms to provide appropriate services adapted to meet the needs of girls, boys and women. Finally, as negotiations move ahead with the re-structuring of the economy and public finance, it is critical that the child welfare and justice services are preserved, allocated minimum financial resources and
Malaysian opposition leader Anwar appointed Prime Minister - newsfirst.lk - Malaysia
newsfirst.lk
95%
446
Malaysian opposition leader Anwar appointed Prime Minister
(Reuters) – Malaysia's king appointed long-time opposition leader Anwar Ibrahim as prime minister on Thursday and he will be sworn in at 5 p.m., ending five days of unprecedented post-election crisis after inconclusive polls.Anwar's appointment caps a three-decade-long political journey from a protege of veteran leader Mahathir Mohamad to a prisoner convicted of sodomy to opposition leader and, finally, prime minister.A general election on Saturday ended in an unprecedented hung parliament with neither of the two main alliances, one led by Anwar and the other by ex-premier Muhyiddin Yassin, immediately able to secure enough seats in parliament to form a government.The 75-year-old Anwar has time and again been denied the premiership despite getting within striking distance over the years: he was deputy prime minister in the 1990s and the official prime minister-in-waiting in 2018.In between, he spent nearly a decade in jail for sodomy and corruption in what he says were politically motivated charges aimed at ending his career.The uncertainty over the election threatened to prolong political instability in the Southeast Asian country, which has had three prime ministers in as many years, and risks delaying policy decisions needed to foster economic recovery.Anwar leads a multi-ethnic coalition of parties with progressive leanings while Muhyiddin's alliance reflects more conservative, ethnic Malay, Muslim views.Anwar's coalition, known as Pakatan Harapan, won the most seats in Saturday's vote with 82, while Muhyiddin's Perikatan Nasional bloc won 73.
Sri Lanka at high risk of a currency crisis, warns top Japanese bank - newsfirst.lk - Japan - Sri Lanka - Pakistan - Turkey - Hungary - Romania - Egypt - Czech Republic
newsfirst.lk
92%
205
Sri Lanka at high risk of a currency crisis, warns top Japanese bank
COLOMBO (News 1st) – Sri Lanka is among the seven countries with a high risk of a currency crisis, warned Nomura Holdings, Japan’s top brokerage and investment bank.The other countries are  Egypt, Romania, Turkey, the Czech Republic, Pakistan, and Hungary.According to Reuters, the Japanese bank said that 22 of the 32 countries covered by its in-house "Damocles" warning system have seen their risk rise since its last update since May, with the largest increases in the Czech Republic and Brazil.It meant the sum of the scores generated on all 32 by the model had increased sharply to 2,234 from 1,744 since May."This is the highest total score since July 1999 and not too far from the peak of 2,692 during the height of the Asian crisis," Nomura economists said, calling it "an ominous warning sign of the growing broad-based risk in EM currencies".The model crunches 8 key indicators on a country's FX reserves, exchange rate, financial health and interest rates to give an overall score.Based on data from 61 different EM currency crises since 1996, Nomura estimates that a score above 100 indicates a 64% chance of a currency crisis in the following 12 months.Egypt, which has already devalued its currency heavily twice this year and sought an International Monetary Fund (IMF) programme, now generates the worst score at 165.Romania is next on 145 having been propping up its currency with interventions.
Sri Lanka hopes for IMF deal in December - newsfirst.lk - China - Japan - India - Sri Lanka
newsfirst.lk
74%
466
Sri Lanka hopes for IMF deal in December
(Reuters) – Sri Lanka has postponed a round of debt restructuring talks initially expected to be held on Thursday to allow central bank and treasury officials to provide clarifications sought by the country's creditors, its state minister of finance said.The island nation formally kicked off the talks in September after securing a preliminary $2.9 billion bailout with the International Monetary Fund, a step on a path out of the country's worst financial crisis in a decade.But it needs to secure financing assurances from key creditors including China, Japan and India before the funds can be disbursed."There are different concerns that different creditors want cleared so it was decided that these clarifications would be communicated first and then new dates would be set for another round of talks," state minister Shehan Semasinghe Semasinghe told Reuters on Thursday."The dates are yet to be decided."Semasinghe did not provide details on the creditors' concerns or what exactly was being discussed between them and Sri Lanka's central bank and treasury officials.Sri Lanka had earlier set a target of getting board level IMF approval in December for the planned four-year programme."We are focusing on financing assurances. As of now no bilateral creditor has informed us that they are not going to support us," Semasinghe added."We have a target and we are pushing hard to meet it in December."Sri Lankan officials have also had talks with representatives from China EXIM Bank and China Development Bank which together hold about $4.3 billion in loans given to fund large infrastructure projects over the last 20 years.
UK MPs want conditions on aid given to Sri Lanka - newsfirst.lk - Sri Lanka - Britain - Eu
newsfirst.lk
45%
225
UK MPs want conditions on aid given to Sri Lanka
COLOMBO (News 1st) – A Backbench Business Committee debate on the UK response to the human rights and economic situation in Sri Lanka took place on Wednesday (9) in the House of Commons chamber.UK MPs called for Sri Lanka to cut down on its military spending to overcome the economic crisis.UK MP Elliot Colburn noted that for Sri Lanka to be rescued, it needs to reduce its military spending, which stands at $1.86 billion per annum. "All of Sri Lanka’s projections for emerging out of the economic crisis are predicated on the country retaining its generalised scheme of preferences and trade concession. That annual trade concession is worth more than $500 million and has boosted Sri Lanka’s exports to EU member states over the years," said the MP adding that however, Sri Lanka has failed to meet the key labour and human rights requirements for receiving that preferential treatment, and the EU recently issued a warning that it is set to lose its concession if it continues to ignore its obligations. "As a key stakeholder at the IMF, the UK Government should propose conditions on any IMF financial assistance for Sri Lanka during the current economic crisis, including that Sri Lanka should carry out a strategic defence and security review to reduce its military spending, remove the military from engaging in commercial activities, meet the criteria for GSP+, and re-engage with the UNHRC process.
Is Sri Lanka on track to access funds from the IMF? - newsfirst.lk - China - city Beijing - Japan - India - Sri Lanka - Washington
newsfirst.lk
77%
834
Is Sri Lanka on track to access funds from the IMF?
Sri Lanka, which is under an ongoing economic crisis, is headed for another major turbulence as the country will not be able to secure the much-needed IMF loan in December as its ally and debtor China is yet to initiate a dialogue on debt restructuring with Colombo.A report in the Hindustan Times quoting financial analysts based in Washington said that Sri Lanka will miss the IMF deadline and will have to wait till March next year to secure a loan of $2.9 billion, as Beijing was involved in the 20th National Party Congress.The next meeting of the IMF executive board is in March 2023, Sri Lanka will most likely have to wait until then for IMF Board approval, and access to the funds.Why is China's involvement so important to access IMF funds?Sri Lanka is now considered a country that defaulted on its external debt because the island nation lacked foreign reserves for debt servicing.According to the Central Bank of Sri Lanka and the Finance Ministry, Sri Lanka's total debt was $36 billion at the end of 2021.Of this total debt, Colombo owes some 52% in bilateral credit to China, 19.5% to Japan, and 12% to India.One of the main conditions for Sri Lanka to tap the USD 2.9 Billion funding from the International Monetary Fund is debt reconciliation and restructuring.Bilateral means transactions between two countries, and there is an institution that operates with the support of the International Monetary Fund to talk about bilateral debt, and this is called the Paris Club.Sri Lanka has obtained a large number of loans from Japan, India, and China, and among them, only Japan is a member of the Paris Club.India is openly supporting Sri Lanka's engagement with the IMF, and avenues are open for Sri Lanka to discuss debt
Bangladesh issues precautionary measure against Sri Lanka, SL trade at risk - newsfirst.lk - Iran - India - Sri Lanka - Bangladesh - Burma
newsfirst.lk
57%
119
Bangladesh issues precautionary measure against Sri Lanka, SL trade at risk
COLOMBO (News 1st) – The Central Bank of Bangladesh last week issued a circular advising all authorized dealers, including banks, to refrain from transactions with Sri Lankan banks through the Asian Clearing Union (ACU) system.The move has been made in response to the "self-motivated decision by the Central Bank of Sri Lanka (CBSL)  to remain temporarily suspended from ACU mechanism with effect from October 14th".Accordingly, all authorized dealers have been advised not to do any trade and trade related transactions with Sri Lanka through the ACU mechanism.The Asian Clearing Union was created among the South Asian Nations in order to provide trading facilities among the South Asian Nations, plus Iran and Myanmar as members in 1974. Within the ACU, all eligible transactions between member countries are required to be settled through the Asian Clearing Union. The unit of settlement of ACU transactions is a common unit of account of ACU, which is equivalent to one USD.In case of importation of materials into a country, it would be debited to the account of that specific country at the Asian Secretariat, and the balance is settled every two months through the ACU in hard currency.With this new move, it would halt the possibility of conducting any transactions between Bangladesh and Sri Lanka through the ACU. However, when New1st inquired on the matter from former Deputy Governor of the Central Bank of Sri Lanka Dr.
Modern slavery: Sri Lankan Domestic Workers held captive in the Middle East - newsfirst.lk - Sri Lanka - city Dubai
newsfirst.lk
64%
918
Modern slavery: Sri Lankan Domestic Workers held captive in the Middle East
COLOMBO (News 1st) – International slavery continues to be a modern day curse that plagues our world.News 1st has for many years battled against international slavery, with a particular focus on Sri Lankan Domestic Workers who are all too often held captive in the Middle East.In the recent past, News 1st has warned that Sri Lanka's current economic crisis would result in increasing numbers of Sri Lankan women being trapped into slavery as thousands more venture overseas to escape poverty.  Now our worst fears have been realised.News 1st brings to you the shocking revelation that more than 50 women have been sent into slavery in Dubai by two job agencies in the central cities of Anuradhapura and Kurunegala, in a report filed by News 1st's Nisal Sooriyarachchi, and Naveksha Gunasekera.A foreign employment agency in Anuradhapura has trafficked more than 50 women to work as virtual slave labour in the state of Dubai where most of them are currently been held against their will in atrocious conditions. Several women who who fell victim to this scam have revealed that the agency headed by 3 women living in Dubai. Thushara Nilmini, a resident of Anuradhapura, who finally made her way back to Sri Lanka after falling victim to the scam, said that between 50 and 60 women who went abroad for domestic work are being held captive in various areas of Dubai. Chandrika, who asked that her full name not be revealed, has gone to work as a domestic worker in Dubai and is currently in a destitute state there. News 1st managed to obtain a telephone interview while she is in Dubai.She said that they stayed at the agency for about a month, and barely got anything to eat. "Then they stationed us at this safe house.
Ranil Wickremesinghe - Cast aside party politics and commit to addressing the country’s food crisis- President advises officials in Ampara - newsfirst.lk
newsfirst.lk
53%
905
Cast aside party politics and commit to addressing the country’s food crisis- President advises officials in Ampara
COLOMBO (News 1st) – President Ranil Wickremesinghe emphasized that all should join together to solve the people’s food issues, casting traditional party politics aside.The President made this observation addressing the public officers at an awareness program on the multi-sector mechanism to empower rural economic revitalization centers to ensure food security and nutrition at Hardy Advanced Technological Institute Auditorium in Ampara this morning (15).The President further noted that no one would be allowed to starve despite the fact that the country is going through a very difficult time and pointed out the importance of successfully implementing the national food production program to prepare for a possible global food crisis in 2023.The president also said that the agriculture modernization program would be implemented from next year concurrent to the food security program.The implementation of the multi-sector mechanism to empower rural economic revitalization centers to ensure food security and nutrition in transforming the Ampara District also into a prosperous one with a blooming community was also discussed at length.The Ampara district contributes 22 percent to the national paddy harvest and discussions were also focused on making the paddy cultivation in the Yala and Maha seasons a success.It was also special feature that the President paid special attention to the issues faced by the government officials during the field work. The president was made aware of issues related to the agriculture and fisheries industry in the Ampara district and he directed the officials to address those issues.
Basil Rajapaksa - Ali Sabry - Charitha Herath - Charitha hits back: First culprit of Economic Crisis was Cabinet including Minister Sabry - newsfirst.lk
newsfirst.lk
72%
556
Charitha hits back: First culprit of Economic Crisis was Cabinet including Minister Sabry
COLOMBO (News 1st) – The former Chairman of the COPE Prof. Charitha Herath today hit back at the former Minister of Justice and the current Foreign Affairs Minister Ali Sabry against his remarks that the Cabinet of Ministers was clueless with regard to the economic crisis. Taking to twitter, the former COPE Chair released a document which included a Notice to the Cabinet by the former Finance Minister Basil Rajapaksa with regard to the country's foreign currency outflows and the distribution of responsibility on foreign currency inflow. The annexure attached to the document, which included the expected outflows and inflows during 2022, underlined the debt servicing payments, maturing sovereign bonds and expenses with regard to goods imports. Minister Ali Sabry on Friday (14) said that the Cabinet of Ministers "thought everything was ok" and failed to recognise the depth of the economic crisis, and were more invested in their own subjects and portfolios. The former COPE Chairman shared the documents and pointed out that such is evidence that the financial issue was discussed at the Cabinet though no solution was found. "True, first culprit of this disaster is the Cabinet of which Ali Sabry was a part." he tweeted. The incident also sparked more discourse, with several notable figures commenting on the matter, with some pointing out that a his resignation is the alternative to this issue.
Sri Lanka & 53 poor nations urgently need debt relief: UN - newsfirst.lk - Sri Lanka - Washington - county Geneva
newsfirst.lk
52%
658
Sri Lanka & 53 poor nations urgently need debt relief: UN
COLOMBO (News 1st) – Cascading global crises have left 54 countries including Sri Lanka – home to more than half of the world's poorest people — in dire need of debt relief, the UN said Tuesday (11).In a new report, the United Nations Development Programme warned that dozens of developing nations were facing a rapidly deepening debt crisis and that "the risks of inaction are dire".UNDP said without immediate relief, at least 54 countries would see rising poverty levels, and "desperately needed investments in climate adaptation and mitigation will not happen".That was worrisome since the affected countries were "among the most climate-vulnerable in the world".The agency's report, published ahead of meetings of the International Monetary Fund, the World Bank, and also of G20 finance ministers in Washington, highlighted the need for swift action.But despite repeated warnings, "little has happened so far, and the risks have been growing," UNDP chief Achim Steiner told reporters in Geneva."That crisis is intensifying and threatening to spill over into an entrenched development crisis across dozens of countries across the world."The poor, indebted countries are facing converging economic pressures and many find it impossible to pay back their debt or access new financing.'Volatility'"Market conditions are shifting rapidly as a synchronised fiscal and monetary contraction and low growth are fuelling volatility around the globe," UNDP said.The UN agency said debt troubles had been brewing in many of the affected countries long before the Covid-19 pandemic hit."The rapid build-up in debt over the past decade has been consistently underestimated," it said.The freeze on debt repayment during the Covid crisis to lighten their burden
Sri Lankans - Gammadda Door to Door moves to three new districts in search of the peoples issues - newsfirst.lk - Sri Lanka
newsfirst.lk
69%
893
Gammadda Door to Door moves to three new districts in search of the peoples issues
COLOMBO (News 1st) – It is no secret that the prevailing economic crisis has led to the disruption of the day-to-day lives of the general public. How many families have been impacted by this unprecedented economic crisis? Has sufficient attention been given to those who are severely affected? The Gammadda Door to Door initiative continues to identify a range of issues faced by average Sri Lankans. On Monday (10), which was Day Six of the Sixth edition of the Gammadda Door to Door program, the team that completed it's tour in the Jaffna district reached the Killinochchi district.They visited the Malayalapuram area in the Karachchi Divisional Secretariat, where most of the residents are day-wage earners.Unfortunately, the economic crisis left them with no work, ruining their chances of providing for their families. Gammadda teams in the Ratnapura district visited Handagirigoda, Handagiriya, Kolonna andSuriyakanda villages in the Welligepola Divisional Secretariat and met with the poverty-stricken estate workers living in Suriyakanda. People in this area do not have the luxury of enjoying cell phone services as the area lacks the basic facilities. Unlike most areas in Sri Lanka children in the area do not have access to online education.Gammadda teams in the Polonnaruwa district toured many areas in the Hingurakgoda Divisional Secretariat. On top of the economic crisis, people in this area face wild elephant threats. 
Sri Lanka needs meaningful outcomes of debt restructuring - newsfirst.lk - Sri Lanka
newsfirst.lk
53%
678
Sri Lanka needs meaningful outcomes of debt restructuring
COLOMBO (News 1st) – The World Bank in its October 2022 update says that it will be imperative to protect the poor and vulnerable by providing immediate additional assistance to the poorest in need, while comprehensively reforming the social protection system.The World Bank warns that poverty has increased sharply since 2021, and it is likely to increase further in the absence of effective mitigation measures and made several recommendations.– In the short run, increasing financing for social assistance should be a priority. – The government will need to invest in the establishment and operationalization of the Welfare Benefits Board and a Social Registry. – The generosity of cash transfers needs to be revisited, particularly for some vulnerable groups– Sri Lanka also needs to adopt more modern payment systems for cash transfer programs.– Given its increasing vulnerability to shocks, Sri Lanka would also benefit from developing a social protection system that can scale up and phase out where needed.– In the medium to long term, Sri Lanka needs to transition to a more fiscally sustainable and inclusive social insurance and aged care system.– Sri Lanka also needs to strengthen its productive inclusion programs.– Finally, a social protection strategy is needed to guide the overall social protection reformThe World Bank said that Rising debt vulnerabilities and weak competitiveness, resulting from years of risky borrowing and poor fiscal and monetary policy choices, along with weak governance, led to an unsustainable debt and a severe balance of payments crisis. It warned that a delayed response allowed the crisis to spread to all key sectors of the economy.The World Bank said that a significant economic contraction is
DMCA