ECONOMYNEXT – Sri Lanka has secured US $ 150 million in a currency swap deal from the central bank of Bangladesh, and a special international currency drawing rights allocation amounting to approximately US $ 787 million for increase gross reserves, the central bank said.
The Bangladesh Bank has given 150 million US dollars out of the 200 million agreed in installments of 50 million, 100 million and 50 million more.
So far 150 million had been received.
“This swap facility has been provided for a period of 3 months with the possibility of rolling over twice for similar periods,” the central bank said.
The IMF had granted Sri Lanka 554 million special drawing rights, the holding (asset) of which is offset by an allocation (liability) and is part of a global creation of “reserve assets”.
The central bank said it was worth around US $ 787 million.
“This provides additional liquidity to the global economy, at a time of unprecedented crisis due to the COVID-19 pandemic, supplementing countries’ foreign exchange reserves and reducing their dependence on domestic debt and / or expensive external, ”the central bank said.
“Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the adverse effects caused by the pandemic. The IMF SDR allocation is not an IMF loan and there are no specific conditions attached to the allocation.
Believing there were no strings attached, the IMF has warned countries that get SDRs not to delay reforms, especially if they have debt problems.
The allocation should not delay necessary macroeconomic adjustments and reforms, nor replace debt restructuring, if the debt is deemed unsustainable, ”said the SDR generator.
IMF allocates new SDR tranche, Sri Lanka obtains US $ 800 million equivalent
A loan equivalent of US $ 300 million to China’s Treasury was also expected shortly. (Colombo / Sept01 / 2021)