Sri Lanka to raise loans foreign currency loans up to USD 500 mn

COLOMBO (News1st): The government is to raise foreign currency loans up to 500 million US dollars with a term of at least one year to finance the budget, the finance ministry said on Wednesday. The Finance Ministry has called for proposals from banks and investment houses to raise the Foreign Currency Term Financing Facility (FTFF) which can have a fixed or floating rate based on the London Interbank Offered Rate, the Ministry said in a public notice. "The proceeds of the FTFF will be used for the purposes of financing the expenditure as approved in the Vote on Account for the Fiscal Year 2020," the notice read. It added that banks or investment houses should submit proposals in multiples of 50 million US dollars, while repayments would be made either in lump or in tranches. "...interest will be paid half-yearly," according to the notice. Banks or investment houses have been allowed to submit proposals on a standalone basis or collectively.