Bangladesh has extended the loan repayment period of 200 million dollars given to Sri Lanka by another six months.
Earlier, the Central Bank of Sri Lanka had asked Bangladesh to pay the first installment of the $200 million loan by March this year, hoping that it would be able to restructure its debt by then.
However, due to the circumstances that arose, the debt restructuring was not done at that time.
Now, Sri Lanka is seeking another six-month extension and said its first installment will be disbursed by August this year and another installment by September, the Bangladesh Bank governor said.
Bangladesh Central Bank Governor Mr. Abdur Rouf Talukder said this while addressing a group of journalists after a discussion with Sri Lanka Central Bank Governor Mr. Nandalal Weerasinghe.
Mr. Talukder said that the Governor of the Central Bank of Sri Lanka confirmed at the 2023 Spring Meeting of the World Bank Group and the International Monetary Fund (IMF) held in Washington on Friday that it does not require a further extension.
Although the loan repayment period is extended, it is not a free grace period.
He also said that more interest will be added to it.
