Sri Lanka expects China US$700mn loan in December 2020
ECONOMYNEXT – Sri Lanka is expecting a 700 million dollar equivalent loan from China Development Bank in December 2020, the Finance Ministry said.
Authorities earlier said the loan would arrive in October.
About 500 million dollars are expected to come in dollars and the balance would be Renmnbi denominated.
The Asian Development Bank approved a 165 million dollar credit in November for on-lending to small and medium enterprises.
Sri Lanka repaid a maturing billion dollar sovereign bond in October 2020, and has also repaid over 4 billion US dollars in other repayments.
In 2021 Sri Lanka has another 4 billion dollars to settle.
Sri Lanka’s central bank has been printing money which can drive credit making it less easy to collect reserves to repay debt.
Sri Lanka’s sovereign rating was downgraded to ‘CCC’ or barely above default by Fitch on November 28, raising questions about the budget.
Sri Lanka has disputed the rating. (Colombo/Nov28/2020)