The proposal presented by the President, as the Minister of Finance, to enter into an agreement on debt restructuring with the Hungarian Export Credit Insurance Private Limited has received Cabinet approval.
According to the government, following the declaration of a sub-policy on the suspension of debt servicing for selected foreign government loans by the Government of Sri Lanka in April 2022, the debt restructuring process has commenced for the achievement of public loan sustainability.
At present, the optimization of the domestic debt program has been successfully completed, while the memorandum of understanding has also been signed with the Committee of Official Creditors relevant to the restructuring of foreign debts.
As per the MOU, agreements for debt restructuring should be entered into with the relevant other countries, ensuring transparency and comparability.
Accordingly, it has been planned to sign an agreement on debt restructuring between the Hungarian Export Credit Insurance Private Limited and the Government of Sri Lanka.
The Hungarian Export Credit Insurance Private Limited has agreed to grant a loan concession through the revision of outstanding debts and all such revised loans will be covered under this proposed agreement. The Attorney General has given his clearance for this proposed agreement.
As such, the Cabinet of Ministers has approved the proposal to enter into an agreement on debt restructuring with the Hungarian Export Credit Insurance Private Limited. (Newswire)