Sunday, May 24, 2009

US will not oppose IMF balance of payments support to Central Bank

Although in legislation placed last week before Congress, Sri Lanka’s application for a USD 1.9 billion facility is being resisted by the US, a way out to grant this facility has been incorporated in the amendments proposed by Senator Leahy with Senators Brown and Casey, well informed sources said yesterday.

(TI)These Congressmen, while calling on the US Secretary of Treasury to instruct the US Executive Directors of international financial institutions "to vote against any loan, agreement or other financial support for Sri Lanka, except for basic human needs," has left what analyst’s called an ``escape clause’’ enabling balance of payments support to the Central Bank if the Treasury Secretary certifies ``that such payments are necessary to prevent significant and imminent hardship among the general population of Sri Lanka.’’ Full text Share on Facebook