IMF Standby Facility - Update 1

I've taken it upon myself to keep myself updated on a day to day basis on the negotiated IMF bailout of 2 Billion dollars. Most of this would be copy/paste + some of my concerns and observations. I beleive we should all be aware of the implications of taking money from the IMF, some of which i hope to write in future posts, in this regard i greatly appreciate some of the statements made by the president that we will not be selling off our national treasures in the process. The President playing hard ball is good. But is this just an act? or is it a genuine attempt that is hopelessly out of place given our reserves position?? we will find out in time.

Transcript of a Press Briefing by David Hawley, Senior Advisor, External Relations Department, International Monetary Fund - imf.org

QUESTION: I wanted to know what you can say about the conditions—the IMF may be considering on the loan to Sri Lanka, a nearly $2 billion loan and there's some discussion of whether they could use it to support the rupee. I also wanted to know whether there's any consideration by the IMF how funds are using given the current military conflict in the country.

MR. HAWLEY: Thank you. Discussions are still ongoing with Sri Lanka and are expected to continue over the next few weeks. They're focused on achieving the government's—in order words, Sri Lanka's policy goals which include rebuilding reserves, reducing the budget deficit and bringing about balance of payment sustainability.

QUESTION: I guess maybe this is kind of a naïve question, but in countries that are involved in—at the U.N. where I usually report from they had a Security Council meeting about the conflict and humanitarian effects of it. What sort of follow through or restrictions are placed such that it isn't—since money is fungible is not used for—or of support to military action?

MR. HAWLEY: I'm sorry. I haven't understood the question.

QUESTION: Since the country is involved currently in a military offensive in the northern part of the country that's given rise to at least one briefing at the U.N. Security Council, what provisions are in place to make sure that such a loan doesn't indirectly simply support military action?

MR. HAWLEY: Let me say—let me repeat what I just said. Our discussion are still ongoing with the Sri Lankan authorities on a possible program, so let us wait for the outcome of those discussions. Thank you very much—and because you were a late arrival, it's 10:30. Thanks a lot.