{"id":142834,"date":"2024-07-04T16:05:28","date_gmt":"2024-07-04T23:05:28","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=142834"},"modified":"2024-07-04T16:05:28","modified_gmt":"2024-07-04T23:05:28","slug":"sri-lanka-bond-holders-agree-to-take-28-percent-haircut","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2024\/07\/04\/sri-lanka-bond-holders-agree-to-take-28-percent-haircut\/","title":{"rendered":"Sri Lanka bond holders agree to take 28 percent haircut"},"content":{"rendered":"<h2><span style=\"color: #0000ff;\"><em>Courtesy hurriyetdailynews<\/em><\/span><\/h2>\n\n\n<p><a href=\"https:\/\/www.hurriyetdailynews.com\/index\/sri-lanka\">Sri Lanka<\/a>&#8216;s private creditors have accepted a 28 percent haircut on $12.5 billion in sovereign bonds, the government announced on Thursday, meeting a key condition of an\u00a0<a href=\"https:\/\/www.hurriyetdailynews.com\/index\/imf\">IMF<\/a>\u00a0bailout.<\/p>\n\n\n\n<p>After two days of talks in Paris with most international sovereign bond (<a href=\"https:\/\/www.hurriyetdailynews.com\/index\/isb\">ISB<\/a>) holders, Colombo clinched the final step in restructuring private, bilateral and domestic debt.<\/p>\n\n\n\n<p>The country defaulted on its external debt in April 2022 after running out of foreign exchange, and the unprecedented economic crisis forced then-president Gotabaya Rajapaksa to step down.<\/p>\n\n\n\n<p>Last week, Sri Lanka announced rescheduling loans from its key bilateral creditor China and other nations, covering up to $10 billion in official loans.<\/p>\n\n\n\n<p>The latest deal with private creditors was announced at the London Stock Exchange, where $4.4 billion out of $12.5 billion of the ISBs were listed.<\/p>\n\n\n\n<p>Under the agreement announced yesterday, the Sri Lankan government said it would pay $225 million upfront to bond holders.<\/p>\n\n\n\n<p>The nominal haircut of 28 percent could go up to almost 40 percent should the South Asian nation&#8217;s economy contract over the next few years and dip below agreed targets.<\/p>\n\n\n\n<p>Sri Lanka owes $2.18 billion to the China Development Bank, and it was not immediately clear if that debt has also been restructured in line with the ISB deal.<\/p>\n\n\n\n<p>The agreement with bond holders must now be presented to official creditors to ensure &#8220;comparability of treatment.&#8221;<\/p>\n\n\n\n<p>Official creditors are not taking a haircut on the principal, but have agreed to reduce interest rates to an average of 2.1 percent and extend the term of the loans by a further eight years, giving the country more time to repay.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Courtesy hurriyetdailynews Sri Lanka&#8216;s private creditors have accepted a 28 percent haircut on $12.5 billion in sovereign bonds, the government announced on Thursday, meeting a key condition of an\u00a0IMF\u00a0bailout. After two days of talks in Paris with most international sovereign bond (ISB) holders, Colombo clinched the final step in restructuring private, bilateral and domestic debt. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[193],"tags":[],"class_list":["post-142834","post","type-post","status-publish","format-standard","hentry","category-imf-bailout-package"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/142834","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=142834"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/142834\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=142834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=142834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=142834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}