Sri Lanka imposes 5 day bank holiday

[pmbug]

Sri Lanka began a five-day bank holiday from Thursday to allow the crisis-hit nation to restructure $42bn (£33.2bn) in domestic debt.

The country is facing its worst economic crisis since it won independence from the British in 1948.

There are fears that the government's restructuring plan could lead to volatility in financial markets.

Debt restructuring can involve the extension of the period over which a loan is repaid.

The plans include a 30% "haircut" - or reduction - on some government bonds held by international lenders, central bank governor Nandalal Weerasinghe announced on Thursday.
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Sri Lanka: Five-day bank holiday for domestic debt restructuring

There are fears the government's plan could lead to volatility in financial markets.

www.bbc.co.uk

They are having to take extreme measures to comply with debt restructuring terms from an IMF loan/bailout.

 

[Voodoo]

Well clearly they just need to tell the IMF to pound sand.

 

[jrog100]

isnt sri lanka just another 3rd world country? or at least a 2nd world country . . .

 

[nickndfl]

Watch for contagion that can start a domino effect.

 

[Goldhedge]

A bank holiday?

Is that like when the wealthy have 5 days to get their money out of the system before the plebes...?