China says the government will support Sri Lanka in its loan application to the International Monetary Fund.
Chinese Foreign Ministry spokesperson Mao Ning speaking during the daily media briefing yesterday (28) said China continuously calls on commercial creditors (including the International Sovereign Bondholders)to provide debt treatment in an equally comparable manner, and encourage multilateral creditors to do their utmost to make corresponding contributions.
Mao Ning said the Export-Import Bank of China provided a financing support document to the Ministry of Finance, Economic Stabilisation and National Policies of Sri Lanka, saying the Bank is going to provide an extension on the debt service due in 2022 and 2023 to help relieve Sri Lanka’s short-term debt repayment pressure.
She noted that “What China did is first based on China’s existing policy and position on debt issue. At the same time, as a special arrangement, it also reflects the traditional friendship between China and Sri Lanka. China’s action fully demonstrates its sincerity and efforts to support Sri Lanka in achieving debt sustainability. China will continue to support relevant financial institutions in actively working out the debt treatment. We will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development”.
The Spokesperson also added, “As a principle, China takes the debt issue of developing countries seriously and has actively contributed to alleviating developing countries’ debt burden and promoting their sustainable development. We are also ready to work with the rest of the international community to continue to provide necessary support to the real difficulties of relevant countries to the best of our capacity. We also call on developed countries and international multilateral financial institutions to take stronger actions in providing financial support to Africa to help it achieve sustainable development”.
