{"id":137660,"date":"2023-10-13T16:25:37","date_gmt":"2023-10-13T23:25:37","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=137660"},"modified":"2023-10-13T16:26:39","modified_gmt":"2023-10-13T23:26:39","slug":"sri-lanka-private-creditors-propose-haircut-gdp-linked-bonds","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2023\/10\/13\/sri-lanka-private-creditors-propose-haircut-gdp-linked-bonds\/","title":{"rendered":"Sri Lanka private creditors propose haircut, GDP-linked bonds."},"content":{"rendered":"<h2><span style=\"color: #0000ff;\"><em>Courtesy CNA<\/em><\/span><\/h2>\n\n\n<p>NEW YORK : A group of private holders of Sri Lanka&#8217;s eurobonds proposed in a debt overhaul plan to the government the issuance of 10 bonds linked with the country&#8217;s macroeconomic health that will mature between 2027 and 2036.<\/p>\n\n\n\n<p>Holders choosing the macro-linked bonds would take a haircut of 20 per cent on the principal, according to the proposal.<\/p>\n\n\n\n<p>Reuters reported on Thursday Sri Lanka&#8217;s private creditors had sent a new proposal on how to restructure $12 billion of overseas debt.<\/p>\n\n\n\n<p>The proposal suggests coupons as a mix of cash and payment in kind, with cash coupons from 2028 paying between 8 per cent and 9.5 per cent, depending on the maturity.<\/p>\n\n\n\n<p>The Sri Lankan government did not respond to a request for comment late on Friday.<\/p>\n\n\n\n<p>The step-down option will be triggered if Sri Lanka&#8217;s gross domestic product (GDP) current prices for the 2026-2027 period is below $98.9 billion, when measured in 2028 by the International Monetary Fund&#8217;s World Economic Outlook.<\/p>\n\n\n\n<p>The most recent reading, for 2022, is $74.85 billion.<\/p>\n\n\n\n<p>Should the step-down option kick in, the coupons will be reduced by between 2.5 per centage points and 6 per centage points, depending on the severity of the shortfall, the proposal suggested.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Courtesy CNA NEW YORK : A group of private holders of Sri Lanka&#8217;s eurobonds proposed in a debt overhaul plan to the government the issuance of 10 bonds linked with the country&#8217;s macroeconomic health that will mature between 2027 and 2036. Holders choosing the macro-linked bonds would take a haircut of 20 per cent on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102],"tags":[],"class_list":["post-137660","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/137660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=137660"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/137660\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=137660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=137660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=137660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}