“Creditors in the process of issuing financial assurances to IMF” | Daily News

“Creditors in the process of issuing financial assurances to IMF”

India has given finance assurances which is acceptable to the IMF and other bilateral creditors, China the Paris Club and some small bilateral creditors are in the process of issuing financial assurances and significant communications have taken place between these parties, the IMF and the Finance Ministry and there have been good progress so far, Central Bank Governor Dr Nandalal Weerasing told the1st Monetary Policy Review of the Central Bank for 2023 press yesterday.

He said issuing financial assurances is a matter between the creditors and IMF and the IMF will have to make a decision whether those assurances are sufficient for them to go ahead with Board approval. The Central Bank chief said there has been a very constructive discussion going on and expressed optimism that the IMF will receive financial assurances from all the creditors in a very short period of time. Dr Weerasinghe said he expects inflation to follow a disinflation path and reach 4% by the year end.

He said they expect interest rates to come down and have also instructed banks to bring down lending and deposit rates. Therefore excessive market interest rates have begun to adjust downwards and were expected to ease further in the period aged.

He said although there was a prediction that the country would contract by -3 % this year he believed the figure would be much less. He said the prediction was that inflation will be as high as 70% at the year end but it was actually 59%. He sias the financial situation is gradually improving with more money coming in and last month an additional USD 100 million was received in addition to the USD 1 billion export revenue. He said the import item ban has also been reduced from 3,000 to 700 items and it would be further reduced when the financial situation improved.

 


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