The Guardian: ‘There is no money left’: Covid crisis leaves Sri Lanka on brink of bankruptcy
Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry.
The meltdown faced by the government, led by the strongman president Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid crisis and the loss of tourism but is compounded by high government spending and tax cuts eroding state revenues, vast debt repayments to China and foreign exchange reserves at their lowest levels in a decade.
Inflation has meanwhile been spurred by the government printing money to pay off domestic loans and foreign bonds.
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WNU Editor: Sri Lanka owes China $6 billion USD. It's external debt is over $50 billion. After shunning the IMF for years and with their credit lines now tapped out, Sri Lanka is now forced to deal with them .... Sri Lankan Ministers Plan Meet to Consider Seeking IMF Bailout (Bloomberg).
6 comments:
Sorry for Sri Lanka but its bankruptcy will open the eyes of countries which are looking for an "help" from China.
Jac, you realise we are next, don't you?
Do you think when our countries collapse, the rich will just throw us a life line?
No... when our countries go down formally, they'll declare marital law and force inject you
Then when everyone's sick, they'll blame the virus on the collapse, and all books will be thrown out, because in the great reset they will not audit themselves
The great reset bets on our collapse, and bets on enough people to take the shot
Good luck
Bullshit.. Only 6 billion out of 50 billion.. How many percentage is that? Biased.. That's all..
12%
12% but the Chinese terms might be more unfavorable and loser to loan sharking.
Also the 12% might have been the last loans the Sri Lankan government undertook and that only after bribery. It might be bias. But we would have to look at the loan dates, the loan terms, possible bribery, etc.
6/50 = 12%.
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