IMF chief hope Lanka’s public creditors engage quickly

“On Sri Lanka, there are three large creditors, Japan, India, China. We are very hopeful to see an engagement from the public side that comes quickly.”

This was stated by Kristalina Georgieva, the Managing Director of the IMF.

Georgieva, speaking at an event hosted by the Center for Global Development, said 25% of emerging market and 60% of low-income countries were in or near debt distress.

Specifically, Georgieva said she hopes to see Sri Lanka’s public creditors quickly engaged and then bringing private creditors on board for debt negotiations.

Earlier on Tuesday, the Sri Lankan government said financial advisory group Lazard started talks with India, China and Japan on restructuring Sri Lanka’s debt.

China and other big creditors have a responsibility to prevent the debt problems facing emerging market and low-income countries from exploding, Georgieva said.

“My message to the large creditors, to China, the private sectors … is that the larger your share is, the bigger your responsibility,” she said.

“It is in your interest as creditors to prevent a problem from exploding.”