Bank of the United States claim debt and sue the Sri Lanka government

Reporter in Carter, Sri Lanka, reporters Wang

Sri Lanka, which has been in debt default, is still undergoing serious fuel shortage. In order to save fuel, the Sri Lanka announced the two weeks of civil servants' homes from June 20. The disaster is not alone. After the historic debt defaults of Sri Lanka, one of the holders of Sri Lanka, one of the holders of Srilate Bond, the United States Hamilton Reserve Bank, recently filed a lawsuit with a federal court in New York. According to Bloomberg reported on the 22nd, the bank requested that Sri Lanka's all -in -one capital and interest in international sovereign bonds that will expire in July exceeded $ 257 million.

According to the legal litigation documents disclosed by local media, "Hamilton Reserve Bank Co., Ltd." was the plaintiff in the case, and the "Sri Lanka Democratic Socialist Republic" was listed as the defendant. It is reported that Hamilton Reserve Bank holds more than $ 250 million in Sri Lanka international sovereign bonds with a interest rate of 5.875%. The bond will expire on July 25. Hamilton Reserve Bank stated in the complaint that "these bonds are also widely held by the US retirement system, and breach of contracts and unpaid payment will cause US retirees to suffer potential huge losses worth 80%of its original investment value."

Hamilton Reserve Bank also demanded that Sri Lanka treats creditors equally, saying that "Sri Lanka has publicly announced the 'debt restructuring', but selectively eliminates the domestic (Sri Lanka) bank and its related parties to the Sri Lanka debt securities."

Sri Lanka has already decided to suspend debt repayment. Sri Lanka took the initiative to stop repayment of debt on April 12, and fell into a debt default on May 19, becoming the first Asia -Pacific country to default since the 21st century. According to documents released by the Ministry of Finance of Sri Lanka on April 12, the government will suspend all normal repayment of all affected debts during a transition period until the economic adjustment plan supported by the International Monetary Fund (IMF), this The debt conducts an orderly and consistent reorganization. Verassicha, the governor of the Sri Lanka Central Bank, also confirmed that the country's sovereign debt defaults for the first time in 1948 have been separated from British independence.

At the same time, Sri Lanka is experiencing a very serious economic crisis. A series of daily necessities such as food, drugs, fuels, etc., high inflation, and prices soaring. According to official statistics, Sri Lanka's inflation rate in May was as high as 45.3%.

The Global Times reporter saw in the capital Colombo that since the government departments began to "holiday", the vehicles on the road have been significantly reduced compared with the past. While lining up in a gas station in the second district of Colombo, the driver Lunewang told the Global Times reporter that he had already lined up here for 20 hours. , It's 12 o'clock. " Rong said, "Actually at 10 o'clock last night, the gas station was no longer oil. I ranked the car in the queue, hurried home to eat some meals, and hurried back. Until 9 am today, the gas station was Come to oil again. "

After the Hamilton Reserve Bank initiated a lawsuit, the former vice president of the Sri Lanka Central Bank and Economist Verawardner wrote on Twitter that "(in July expired) $ 1 billion in international sovereign debt, US $ 250 million accounted for $ 250 million 25%, without other lawsuits, this lawsuit may affect the 75%decision. " Analysts say that sovereign debt defaults will damage the reputation of a country and make it more difficult for the country to borrow urgently in the international market. Even if the country can borrow funds, it will need to pay higher borrowing costs than before breach of contract, which will further damage the economy of Sri Lanka.

It is reported that a delegation of a staff member of the IMF has arrived in Sri Lanka on June 20 to continue negotiations on the rescue plan. Sri Lanka Prime Minister Victor Marinha said Sri Lanka intends to reach a formal agreement with the IMF before the end of next month. "IMF bailout is the only choice to avoid economic disasters in Sri Lanka." Victor Marinha said, "If we obtain IMF approval, the world will trust us again, which will help us get loan assistance and low interest loans in other countries. "▲

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