Deborah Brautigam of Johns Hopkins University explains that the IMF does not provide assistance solely on the basis of an emergency, and that it requires assurances that its money will be repaid.
Sri Lanka needs political stability to draw IMF support, says professor
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POLÍCIA. S…S..A. …S… T…A..N.
Sri Lanka will need food and seeds to grow food. Loaning them money they cannot pay back will hurt them further. They should start selling off their tuktuk’s and other vehicles to another nation while there is still value in internal combustion transportation.
Sri Lanka doesn’t need more debt from the IMF, it needs debt relief! The IMF will only exacerbate a bad situation as they always do. China who holds less than 10% of Sri Lanka’s debt promptly gave the country $700 million in emergency assistance. Why can’t its other lenders like US, UK, German & Swiss banks who hold 47% of the debt, or the Asian Development Bank (ADB) with 13% & the World Bank with 9% do the same?
It’s part of a bigger play
In other words, as soon as a strong-arm totalitarian takes control, and guarantees that the IMF’s banks get paid before literally EVERYONE else, then they might loan Sri Lanka the money it needs. Hey, maybe that’s why East Africa is turning to China for its loans.