Courtesy Hiru News

Former Central Bank Governor Dr. Indrajit Coomaraswamy said that foreign creditors would want to get the debt restructuring exercise over with as quickly as possible.

He noted that it wouldn’t be in the interests of foreign creditors to put the local banking sector into crisis.

He added that macroeconomic indicators had improved in excess of the projections made by the IMF and other multilateral institutions.

When asked about the potential delaying of processes due to demands of further domestic debt restructuring Dr. Coomaraswamy said, his understanding is that most of the creditors want to get this done quickly.

He went on to explain that there must be equitable treatment amongst debtor groups.

Dr. Coomaraswamy was speaking at a recent NDB Securities Rupee Round Table discussion.

On the extent of a voluntary domestic debt restructuring, Dr. Coomaraswamy noted that the impact on the financial system could not exceed the cost of funds deposit-taking institutions will face in the period ahead.