Wednesday, May 25, 2022
  • PRESS RELEASE
  • ADVERTISE
  • CONTACT
Asia Post
No Result
View All Result
  • HOME
  • NEWS
    • INDIA
    • CHINA
    • WORLD
  • DEFENSE
  • POLITICS
  • BUSINESS
  • HEALTH
  • SPORTS
  • ENTRTAINMENT
  • TECHNOLOGY
  • LIFESTYLE
  • TRAVEL
  • OUR TEAM
Asia Post
No Result
View All Result

IMF-WB meeting: Global financial leaders discuss Sri Lanka debt crisis

April 21, 2022
in WORLD
0 0
0
Share on FacebookShare on TwitterShare on Email


Sri Lanka is grappling with unprecedented economic turmoil since its independence from Britain in 1948

Sri Lanka’s bitter debt crisis experience has emerged as one of the major topics of discussion among the global financial leaders who have gathered here for the annual spring meeting of the International Monetary Fund and the World Bank, according to officials.

The island nation is grappling with unprecedented economic turmoil since its independence from Britain in 1948. The crisis is caused in part by a lack of foreign currency, which has meant that the country cannot afford to pay for imports of staple foods and fuel, leading to acute shortages and very high prices.

The country is witnessing large-scale protests against the government’s handling of the debt-ridden economy — the worst-ever economic crisis in the country’s history.

“The debt crisis itself is a topic of extensive conversation this week, both at the IMF, at the World Bank, and among the G-20, and other shareholder groups that are forming this week,” World Bank President David Malpass told reporters during a news conference here on Wednesday.

Finance Ministers, including India’s Nirmala Sitharaman and heads of central banks from across the world, are in Washington DC to attend the annual spring meetings of the IMF and the World Bank.

“It’s vital and we know what the data shows: a huge buildup of debt, especially in the poorest countries. It’s important that the resolution process starts early. If you wait, the resolutions are much more difficult to carry out. Sri Lanka is facing that problem now,” Malpass said.

Saddled with a huge forex crisis, Sri Lanka on April 12 announced a pre-emptive default of all its foreign debt totalling $51 billion as a “last resort” and emergency measure.

After weeks of dithering to respond to calls for help from crisis-hit Sri Lanka, China, whose large loans and investments to the island nation led to allegations of debt diplomacy, has said it will provide “emergency humanitarian assistance” to Colombo, but remained silent on its plea for debt rescheduling.

“It’s important to form the creditor committees early. There was a call today for China to form the creditor committee for Zambia, which would help with the implementation of the Common Framework. And so, I’ve mentioned that as interest rates rise, the debt pressures are mounting on developing countries, and we need to move urgently towards solutions,” Malpass said.

Vitor Gaspar, Director, Fiscal Affairs Department of the IMF told reporters that in the first year of the pandemic, global debt increased by 28 percentage points of the GDP, and that is the highest one-year jump on record.

“Half of that, slightly over half of that was public debt. Now, in 2021, given economic recovery, inflation surprises, and the narrowing in deficits, the public debt-to-GDP ratio has fallen in most countries of the world, but going forward with the horizon of 2024, public debt will stay above what was projected before the pandemic,” he said.

Responding to a question, Paolo Mauro, Deputy Director, Fiscal Affairs Department IMF said India was starting out with a relatively high debt-to-GDP ratio compared with other emerging economies.

“I guess the good news is that most of that debt is in domestic currency,” he said.

Published on


April 21, 2022



Source link

Tags: CrisisDebtdiscussfinancialGlobalIMFWBLankaleadersmeetingSri
ShareTweetSend

Related Posts

WORLD

Yasin Malik gets life imprisonment, Pak PM Shehbaz Sharif says it’s ‘black day’ for Indian democracy | India News

May 25, 2022
WORLD

All Texas school shooting victims were in same room, says official

May 25, 2022
WORLD

Pakistan Police Fire Teargas, Baton-charge Supporters of Ousted PM Khan

May 25, 2022
WORLD

Texas school shooting: A look at some of the deadliest shootings in US

May 25, 2022
WORLD

“Learnt Good Things”: Hardik Pandya On India Legend After Taking Gujarat Titans To IPL 2022 Final

May 25, 2022
WORLD

Pfizer To Sell Drugs To World’s Poorest Countries On Not-For-Profit Basis

May 25, 2022
Load More
Next Post

India Art Fair 2022’s summer roll call

Munawar Faruqui In 'Lock Upp' Has A Supporter — Prince Narula's Wife Yuvvika Choudhary Wants Him To Win

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

India’s first case of Omicron subvariant BA.4 detected in Hyderabad

May 19, 2022

Man Declared Dead at Shanghai’s Elderly Care Centre, Found Alive in Morgue

May 2, 2022

Outcry in Shanghai as person declared dead and put in body bag found to be alive | China

May 3, 2022

Tesla halts most production in Shanghai over supply problems | Tesla

May 10, 2022

Luxury brands navigate Shanghai’s lockdown to keep VIPs pampered

May 10, 2022

Insect protein startup raises $30 million investment | China Breaking News | Top Stories | Political | Business | Entertainment

May 16, 2022

Shanghai Tightens Lockdown After Politburo Standing Committee Warning

May 11, 2022

Shanghai lockdown sends chill down meat trade

May 2, 2022

Cloudy Skies Keep Mercury in Check in Delhi, No Heatwave Forecast for Another Week

May 25, 2022

Yasin Malik gets life imprisonment, Pak PM Shehbaz Sharif says it’s ‘black day’ for Indian democracy | India News

May 25, 2022

Earth’s orbital debris problem is worsening, and policy solutions are difficult

May 25, 2022

Urfi Javed Calls Rahul Vaidya ‘Sexist Hypocrite’

May 25, 2022

Council polls: KRRS-backed candidate jumps into fray

May 25, 2022

Daria Saville says can’t go back to Russia, the country of her birth

May 25, 2022

China Seeks Sweeping Regional Deal With Pacific Island Countries

May 25, 2022

Discordant voices of a dynast

May 25, 2022
Asia Post

Get the latest news and follow the coverage of breaking news, local news, national, politics, and more from the Asia's top trusted sources.

Categories

  • BUSINESS
  • CHINA
  • DEFENSE
  • ENTRTAINMENT
  • HEALTH
  • INDIA
  • INDIA-NORTHEAST
  • LIFESTYLE
  • POLITICS
  • SPORTS
  • TECHNOLOGY
  • TRAVEL
  • WORLD

Recent News

  • Cloudy Skies Keep Mercury in Check in Delhi, No Heatwave Forecast for Another Week
  • Yasin Malik gets life imprisonment, Pak PM Shehbaz Sharif says it’s ‘black day’ for Indian democracy | India News
  • Earth’s orbital debris problem is worsening, and policy solutions are difficult
  • Home
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Our Team
  • Contact

Copyright © 2021 Asia Post.
Asia Post is not responsible for the content of external sites.

No Result
View All Result
  • HOME
  • NEWS
    • INDIA
    • CHINA
    • WORLD
  • DEFENSE
  • POLITICS
  • BUSINESS
  • HEALTH
  • SPORTS
  • ENTRTAINMENT
  • TECHNOLOGY
  • LIFESTYLE
  • TRAVEL
  • OUR TEAM

Copyright © 2021 Asia Post.
Asia Post is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In