Sri Lanka Strikes Restructuring Agreement With Bondholders

COLOMBO (News 1st); Sri Lanka and creditors reached agreement on the terms for a $12 billion bond restructuring, bringing the South Asian nation closer to completing its debt overhaul two years after it defaulted, reported Bloomberg.

Bondholders and the nation agreed to a framework for a deal that includes notes linked to economic performance and a governance-linked structure as part of plain vanilla instruments, according to a statement released Wednesday at the conclusion of the second round of restricted talks.

Bloomberg said that creditors agreed to a 28% nominal haircut on existing bonds