The financing assurances policy is proving to be the main roadblock towards IMF program approval in recent sovereign restructuring cases, such as Zambia and Sri Lanka. The Fund is walking a fine line between risking to give reluctant creditors a veto over IMF disbursements, and letting them be repaid with said disbursements instead of contributing their fair share in the restructuring.
IMF financing assurances: no quick fix
IMF financing assurances: no quick fix
IMF financing assurances: no quick fix
The financing assurances policy is proving to be the main roadblock towards IMF program approval in recent sovereign restructuring cases, such as Zambia and Sri Lanka. The Fund is walking a fine line between risking to give reluctant creditors a veto over IMF disbursements, and letting them be repaid with said disbursements instead of contributing their fair share in the restructuring.