The government has secured delayed payment on interest and postponement on maturity date in restructured debt deal with bilateral creditors.
The creditors, however rejected any haircut on the principal.
The terms were captured in the agreement of the memorandum of understanding (MoU) reached by government with the bilateral creditors through the official creditor committee.
It is still not clear if the process has been finalized since the MoU is just the broad framework for the restructuring for the creditors. However, sources say negotiations with the bilateral creditors are done and there will not be further negotiations.
“What the countries are doing now is an internal procedure to sign the Agreement”, a source said.
Government is expected to move and engage each individual country for a final deal in restructuring the $5.4 billion owed the creditors.
It is also not clear for now how the terms government has reached with the bilateral creditors could influence the current discussion with the Eurobond holders, especially when the commercial creditors are also pushing for equal terms for all the creditors.
Government is also required to set up an escrow account and start putting some money aside until the time is up to start making the payments.
