Sri Lanka’s first default on foreign debt likely this week

New prime minister says the government plans to sell its national airline and pledges a new ‘relief’ budgetDemonstrators scuffle with police in Colombo on Monday as Sri Lanka slides inexorably towards debt default. Picture: ADNAN ABIDI/REUTERS

Sri Lanka’s government announced in mid-April it would stop paying back its foreign debt to preserve cash for food and fuel imports as it struggled with a dollar crunch that’s led officials to implement capital controls and import curbs. A few days later, it failed to service a $78m coupon on its dollar bonds due in 2023 and 2028, leading S&P Global Ratings to declare a selective default.

Sri Lankan dollar notes due in 2029 were quoted up less than half a cent to 38.5c on the dollar on Monday, after touching an all-time low of 37c on the dollar last week, indicative pricing data compiled by Bloomberg showed. The extra yield investors demand to hold the notes over US Treasuries is just over 37 percentage points, according to JPMorgan Chase. That’s far above the 1,000 basis point threshold to be considered distressed.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Debt distress in Africa: biggest problems, and ways forwardCurrently, 22 countries are either in debt distress or at high risk of debt distress, meaning African governments are struggling to pay the debts they incurred on behalf of their states. Some months back I had no way of taking care of my kids , had no job or money also struggling through the pandemic,so I decided to try Bitcoin trading with the help of Allison_Grillo I was able to earn $50,000 now am financially stable. I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you.
Source: ewnupdates - 🏆 30. / 53 Read more »

Gauteng departments owe municipalities nearly R450mDebt owed is mostly to municipalities under administration and struggling to provide basic services Typical BEE Affirmative Action Thieves
Source: BDliveSA - 🏆 12. / 63 Read more »