India puts off US$ 30 mn in loan repayments over three years

India on Tuesday said it would postpone up to US$ 30 million in debt repayment over the next three years. India on Tuesday said it would postpone up to US$ 30 million in debt repayment over the next three years. The Finance Minister meanwhile hopes to leverage India’s commitment to push the Paris Club to extend its moratorium to over one year.

The Paris Club – the informal circle of international creditor nations, which include Japan and the United States have agreed to postpone a part of Sri Lanka’s debt repayment commitments for 2005.

The monies retained are expected to pay for capital good imports, needed for post-tsunami reconstruction.

However, beyond 2005 Sri Lanka will have to go before the Paris Club again for extension to the moratorium.

Amunugama says the govenment will present its case and India’s generosity to the Paris Club, hoping to put off its loan repayment commitments for up to three years.

The Paris Club is an informal group of official creditors whose role is to find co-ordinated and sustainable solutions to the payment difficulties experienced by debtor nati