IMF approves $2.6 bn loan for Sri Lanka
The International Monetary Fund approved a $2.6 billion loan for Sri Lanka to support its economic reform program and help the country weather the severe global downturn.business Updated: Jul 25, 2009 07:35 IST
The International Monetary Fund approved a $2.6 billion loan for Sri Lanka to support its economic reform program and help the country weather the severe global downturn.
The IMF executive board approved the Stand-By Arrangement in an amount equivalent to $1.65 billion Special Drawing Rights (SDRs), an IMF asset that is based on a basket of currencies the dollar, yen, euro and pound and calculated daily.
The 20-month loan is worth about $2.6 billion.
A first installment of about $322.2 million is immediately available to Sri Lanka, while the remainder will be phased in "subject to quarterly reviews," the multilateral institution said.
"The key objectives of the authorities' economic reform program supported by the fund are to strengthen the country's fiscal position while ensuring the availability of resources for much needed post-conflict reconstruction and relief efforts," the IMF said.
The total amount of IMF resources made available under the arrangement equals 400 per cent of the country's quota in the 186-nation institution, it said.