The Chinese Ministry of Foreign Affairs confirmed to Reuters that China Import and Export Bank asked Sri Lanka to postpone the repayment of debt.
The Ministry of Foreign Affairs told Reuters on Thursday (January 26): "Sri Lanka is facing difficulties and challenges, China also feels empathy, and we can provide assistance in Sri Lanka's socio -economic development."
Reuters earlier quoted letters from China and Date reported on the 19th of this month. China Import and Export Bank asked Sri Lanka to postpone the repayment of debt for up to two years, and said that it would support Sri Lanka to win 29 from the International Monetary Fund Organization 29A loan of 100 million US dollars (S $ 3.8 billion).
Import and export banks are state -owned policy banks who are directly under the leadership of the State Council of China and support China's foreign economic and trade investment development and international economic cooperation.
China and India are Sri Lanka's largest bilateral loan countries.According to a report released by the International Monetary Fund last March, as of the end of 2020, China import and export banks provided US $ 2.83 billion in loans to Sri Lanka, accounting for 3.5%of Sri Lanka's total debt.
India earlier this month and told the International Monetary Fund that they will promise to support Sri Lanka through financing and debt reductions, but Sri Lanka also needs China support to reach the final agreement with the International Monetary Fund OrganizationEssence
A survey launched by the Global Development Policy Research Center of the University of Boston in the United States found that due to the influence of China's reduction of large oil projects, China's import and export banks and China National Development Bank made loan commitments to 100 developing countries.The amount fell to the lowest level in 13 years in 2021, reaching $ 3.7 billion.
