Sri Lankan officials and global investors are expected to hold a second round of direct talks this week to agree on the restructuring of $12 billion in defaulted bonds, it was reported.
Citing people familiar with the matter, Bloomberg News reported that a group of bondholders, known as the steering committee, will continue to negotiate the government’s new proposal in this round of the talks.
The sources further said that the bondholders went “restricted,” meaning the conversations with the government are covered by temporary trading limitations because the topics under discussion may be market-sensitive.
In February, Sri Lanka sent a proposal to holders of dollar bonds as part of its plan to overhaul $27 billion of foreign debt, including bonds and loans. The restructuring is critical to ensure financing from the IMF bailout keeps flowing.
Sri Lanka needs to reach deals with both bondholders and bilateral lenders to keep receiving IMF disbursements under a $3 billion program.
According to an earlier report by Bloomberg News, the government and a group of creditors including India and the Paris Club were in advanced talks over a deal. (Newswire/ Bloomberg)
