The International Monetary Fund (IMF) on Thursday said that Sri Lanka's tax reforms are necessary for the cash-strapped country to regain the confidence of creditors. The Lankan government announced a ban on strikes in several key sectors, just one day before a planned nationwide stoppage called by unions, which was aimed at protesting against hikes in taxes and utility bills.&nbsp;

However, Sri Lankan workers defied the ban as they went on a strike in order to protest against the government and its proposed rescue plan for the bankrupt nation. Workers forced the closure of some hospitals, banks, etc.&nbsp;

President Ranil Wickremesinghe has hiked corporate tax&nbsp;to 30 per cent from 24 per cent in January, after raising VAT (Value Added Tax) to 15 per cent last year. Wickremesinghe, who is also the country's finance minister, introduced tax hikes with effect from January widely believed to be on demand by the IMF.&nbsp;

The IMF said in a statement: "Sri Lanka is among the countries to collect the least amount of fiscal revenue in the world, with tax revenue to GDP ratio at only 7.3 per cent in 2021. External creditors are not willing to provide financing to fill this gap".&nbsp;

The IMF noted that it is aware of the difficulties faced by the common people in the nation at this crucial juncture. The global lender said: "Increases in the cost of living, loss of employment and livelihood, and falling real incomes have hit large parts of the population, and particularly the poor and vulnerable who have no buffers to withstand these hardships."&nbsp;

WATCH |&nbsp;Inside South Asia: Pakistan economy on the brink&nbsp;

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IMF mentioned that the current economic crisis has a number of origins, including the government's inability to meet government spending needs through its revenue collections.&nbsp;

The IMF said that tax reforms were needed as only "with appropriate tax receipts will the government will be able to fund essential expenditures, and avoid further slashing of critically important outlays". It said also in the statement: "These reforms will also help regain the confidence of creditors."&nbsp;

Last year in September, the IMF approved Sri Lanka a $2.9 billion bailout package over four years pending the nation's ability to restructure its debt with creditors - both bilateral and sovereign bondholders.&nbsp;

(With inputs from agencies)

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The International Monetary Fund (IMF) on Thursday said that Sri Lanka's tax reforms are necessary for the cash-strapped country to regain the confidence of creditors.

The International Monetary Fund (IMF) on Thursday said that Sri Lanka's tax reforms are necessary for the cash-strapped country to regain the confidence of creditors. The Lankan government announced a ban on strikes in several key sectors, just one day before a planned nationwide stoppage called by unions, which was aimed at protesting against hikes in taxes and utility bills. However, Sri Lankan workers defied the ban as they went on a strike in order to protest against the government and its proposed rescue plan for the bankrupt nation. Workers forced the closure of some hospitals, banks, etc. President Ranil Wickremesinghe has hiked corporate tax to 30 per cent from 24 per cent in January, after raising VAT (Value Added Tax) to 15 per cent last year. Wickremesinghe, who is also the country's finance minister, introduced tax hikes with effect from January widely believed to be on demand by the IMF. The IMF said in a statement: "Sri Lanka is among the countries to collect the least amount of fiscal revenue in the world, with tax revenue to GDP ratio at only 7.3 per cent in 2021. External creditors are not willing to provide financing to fill this gap". The IMF noted that it is aware of the difficulties faced by the common people in the nation at this crucial juncture. The global lender said: "Increases in the cost of living, loss of employment and livelihood, and falling real incomes have hit large parts of the population, and particularly the poor and vulnerable who have no buffers to withstand these hardships." WATCH | Inside South Asia: Pakistan economy on the brink × IMF mentioned that the current economic crisis has a number of origins, including the government's inability to meet government spending needs through its revenue collections. The IMF said that tax reforms were needed as only "with appropriate tax receipts will the government will be able to fund essential expenditures, and avoid further slashing of critically important outlays". It said also in the statement: "These reforms will also help regain the confidence of creditors." Last year in September, the IMF approved Sri Lanka a $2.9 billion bailout package over four years pending the nation's ability to restructure its debt with creditors - both bilateral and sovereign bondholders. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

IMF says Sri Lanka’s tax reforms essential to regain the confidence of creditors

As the world is shifting to various social media platforms, debt collectors too have the chance to hop on the technology train now. Debt collectors can now contact their consumers through social media platforms and text messages.<o:p></o:p>

The Consumer Financial Protection Bureau (CFPB) has now allowed all creditors to directly message Americans who have loans. So, now, the US creditors are legally allowed to slide into DMs.

<o:p>Also read |&nbsp;<a href="https://www.wionews.com/trending/gamechanger-scientists-reveal-cruelty-free-mushroom-leather-433875">Gamechanger? Scientists reveal cruelty-free 'mushroom leather'</a></o:p>

This change was approved last year under the Donald Trump administration. Supporters of this rule have argued that this is simply a modification of the rule created in the 1970s. They also believe that this change was needed to keep up with the changing times as the law was drafted in 1977 when social media platforms did not exist and text messages were not regular.<o:p></o:p>

However, the critics are arguing that this might not be the best way to reach out to the Americans as there is a possibility that messages can be lost online.<o:p></o:p>

Critics also argue that this can be an invasion of privacy and can also give birth to new and deadly scams.

<o:p>Also read |&nbsp;<a href="https://www.wionews.com/world/man-dressed-as-ninja-shot-by-french-cops-after-attacking-two-policewomen-with-sword-433840">Man dressed as ninja shot by French cops after attacking two policewomen with sword</a></o:p>

Under the rule approved by the CFPB, creditors are allowed to directly and personally contact defaulters through text messages and direct messages. However, the debt collectors are not allowed to post anything on the public pages of the defaulters.<o:p></o:p>

Another interesting thing under this rule is that consumers can opt out of getting these messages. Creditors, in general, are not bound to take permission to contact people. In addition to this, there is also no set limit to how many messages can be sent to the defaulters.<o:p></o:p>

As the world is shifting to various social media platforms, debt collectors too have the chance to hop on the technology train now. Debt collectors can now contact their consumers through social media platforms and text messages.

As the world is shifting to various social media platforms, debt collectors too have the chance to hop on the technology train now. Debt collectors can now contact their consumers through social media platforms and text messages. The Consumer Financial Protection Bureau (CFPB) has now allowed all creditors to directly message Americans who have loans. So, now, the US creditors are legally allowed to slide into DMs. Also read | Gamechanger? Scientists reveal cruelty-free 'mushroom leather' This change was approved last year under the Donald Trump administration. Supporters of this rule have argued that this is simply a modification of the rule created in the 1970s. They also believe that this change was needed to keep up with the changing times as the law was drafted in 1977 when social media platforms did not exist and text messages were not regular. However, the critics are arguing that this might not be the best way to reach out to the Americans as there is a possibility that messages can be lost online. Critics also argue that this can be an invasion of privacy and can also give birth to new and deadly scams. Also read | Man dressed as ninja shot by French cops after attacking two policewomen with sword Under the rule approved by the CFPB, creditors are allowed to directly and personally contact defaulters through text messages and direct messages. However, the debt collectors are not allowed to post anything on the public pages of the defaulters. Another interesting thing under this rule is that consumers can opt out of getting these messages. Creditors, in general, are not bound to take permission to contact people. In addition to this, there is also no set limit to how many messages can be sent to the defaulters.

Changing with times: US creditors can now DM loan defaulters

Several factions of Argentina's bondholders are jostling for influence ahead of restructuring talks with incoming president Alberto Fernandez as Latin America's third-largest economy tries to avert a default, more than a dozen sources familiar with the process said.

Argentina is once again buckling under the weight of its sovereign debts, which total around $100 billion, and Fernandez needs to urgently agree a deal with creditors to ease the burden and give his government space to try to revive the economy.

Several investors told Reuters they are growing increasingly annoyed by a lack of clarity on the plans of the new government, which is set to take over on December&nbsp;10. Fernandez has not yet named his economic team or said how he will deal with the debts, which have become painfully costly after the collapse of the peso.

"The general frustration is how slow the incoming administration has been to name people and get the ball rolling," a source at a large fixed-income investor that holds Argentine debt said, adding that with more clarity things could change "fairly quickly".

Fernandez this week told the International Monetary Fund's (IMF) head Kristalina Georgieva he has a "sustainable" plan to meet creditor obligations as well as maintain growth, without giving details.

A media representative for Fernandez did not immediately respond to a request for comment on Friday.

A creditor committee of at least 20 members was formed last month as bondholders look for ways to avoid losses, which could reach tens of billions of dollars, on their holdings.

A second group is now being assembled, led by US-based emerging markets-focused investment manager Gramercy, three sources said, amid differences over the way forward.

A third group of mostly hedge funds holding bonds restructured after a prior Argentine default was also being brought together, sources said.

Gramercy has previous experience in Argentina, where its distressed debt chief investment officer Robert Koenigsberger was involved in debt talks in 2009.

Several bondholders said a range of proposals for bundling creditors were circulating, although some said they would rather stick to a larger single group controlling a bigger debt slice.

The process of organising creditors is still in the early stages and it is not clear how much of Argentina's debt each grouping represents at this stage.

Gramercy's proposal, which also involves emerging markets investment manager Macrosynergy Partners, has put together a number of possible scenarios, three sources familiar with the plans said.

One of these includes an extension of maturities to ease the pressure on Argentina's struggling finances, but no write-down.

"The group's preferred scenario is to get a five-year extension, but there is no haircut," one of the sources said.

The IMF says that until the new government sets an economic path it cannot decide if private creditor haircuts are needed to keep its $57 billion bailout programme in place.

"In the absence of the whole macroeconomic strategy it is very hard to judge how their operation would lead to a sustainable debt position," Alejandro Werner, head of the Western Hemisphere Department at the IMF, said on Wednesday at an event in New York.

"Once you have the policy proposals you can judge what kind of debt operation is consistent with those policies," he added.

The last major default by Argentina in 2001 tipped the country of 44 million people into years of recession and economic crisis from which it only emerged in 2015.

Argentine bonds, almost 80 per cent&nbsp;of which are denominated in foreign currency, were given a small lift by Fernandez's comments this week, but they are still trading at less than half their face value.

And the peso is the world's worst-performing currency this year, despite being propped up by capital controls put in place in September, weeks after Fernandez's shock victory in a primary election sparked financial market panic.

Several factions of Argentina's bondholders are jostling for influence ahead of restructuring talks with incoming president Alberto Fernandez as Latin America's third-largest economy tries to avert a default, more than a dozen sources familiar with the process said.

Several factions of Argentina's bondholders are jostling for influence ahead of restructuring talks with incoming president Alberto Fernandez as Latin America's third-largest economy tries to avert a default, more than a dozen sources familiar with the process said. Argentina is once again buckling under the weight of its sovereign debts, which total around $100 billion, and Fernandez needs to urgently agree a deal with creditors to ease the burden and give his government space to try to revive the economy. Several investors told Reuters they are growing increasingly annoyed by a lack of clarity on the plans of the new government, which is set to take over on December 10. Fernandez has not yet named his economic team or said how he will deal with the debts, which have become painfully costly after the collapse of the peso. "The general frustration is how slow the incoming administration has been to name people and get the ball rolling," a source at a large fixed-income investor that holds Argentine debt said, adding that with more clarity things could change "fairly quickly". Fernandez this week told the International Monetary Fund's (IMF) head Kristalina Georgieva he has a "sustainable" plan to meet creditor obligations as well as maintain growth, without giving details. A media representative for Fernandez did not immediately respond to a request for comment on Friday. A creditor committee of at least 20 members was formed last month as bondholders look for ways to avoid losses, which could reach tens of billions of dollars, on their holdings. A second group is now being assembled, led by US-based emerging markets-focused investment manager Gramercy, three sources said, amid differences over the way forward. A third group of mostly hedge funds holding bonds restructured after a prior Argentine default was also being brought together, sources said. Gramercy has previous experience in Argentina, where its distressed debt chief investment officer Robert Koenigsberger was involved in debt talks in 2009. Several bondholders said a range of proposals for bundling creditors were circulating, although some said they would rather stick to a larger single group controlling a bigger debt slice. The process of organising creditors is still in the early stages and it is not clear how much of Argentina's debt each grouping represents at this stage. Gramercy's proposal, which also involves emerging markets investment manager Macrosynergy Partners, has put together a number of possible scenarios, three sources familiar with the plans said. One of these includes an extension of maturities to ease the pressure on Argentina's struggling finances, but no write-down. "The group's preferred scenario is to get a five-year extension, but there is no haircut," one of the sources said. The IMF says that until the new government sets an economic path it cannot decide if private creditor haircuts are needed to keep its $57 billion bailout programme in place. "In the absence of the whole macroeconomic strategy it is very hard to judge how their operation would lead to a sustainable debt position," Alejandro Werner, head of the Western Hemisphere Department at the IMF, said on Wednesday at an event in New York. "Once you have the policy proposals you can judge what kind of debt operation is consistent with those policies," he added. The last major default by Argentina in 2001 tipped the country of 44 million people into years of recession and economic crisis from which it only emerged in 2015. Argentine bonds, almost 80 per cent of which are denominated in foreign currency, were given a small lift by Fernandez's comments this week, but they are still trading at less than half their face value. And the peso is the world's worst-performing currency this year, despite being propped up by capital controls put in place in September, weeks after Fernandez's shock victory in a primary election sparked financial market panic.

Argentina creditors jockey for lead ahead of $100 billion debt talks

Fugitive businessman Vijay Mallya Monday told the Bombay High Court that confiscation of his properties under the newly-enacted Fugitive Economic Offenders Act (FEOA) was draconian and it will not help the creditors.&nbsp;

Mallya had last month approached the high court challenging a January 5 order of a special Prevention of Money Laundering Act (PMLA) court declaring him a fugitive economic offender under the FEO Act.

As per provisions of the Act, once a person is declared a fugitive, his properties can be confiscated by the prosecuting agency, Enforcement Directorate (ED). Mallya’s counsel Amit Desai on Monday told a division bench of Justices I A Mahanty and A M Badar that the ED confiscating the properties will not help the creditors.

“Confiscating is draconian. The need of the hour is to deal with the banks and creditors. Mallya does not want the properties to be returned to him. We are only saying that confiscation by the government is not going to solve the problems of the banks and creditors,” Desai said. The ED, while opposing the petition, argued that the object of the Act was to ensure the return of a person who is evading arrest in India.

“These proceedings are to ensure that these persons who commit fraud and leave the country are brought back. The moment Mallya returns to India, the provisions of this Act and the process initiated under it shall become null and void,” ED said. The bench has posted the petition for further hearing on April 24.

However, the next hearing on ED’s application before the special court, seeking permission to start confiscation proceedings, is scheduled for April 8.

Fugitive businessman Vijay Mallya Monday told the Bombay High Court that confiscation of his properties under the newly-enacted Fugitive Economic Offenders Act (FEOA) was draconian and it will not help the creditors.

Fugitive businessman Vijay Mallya Monday told the Bombay High Court that confiscation of his properties under the newly-enacted Fugitive Economic Offenders Act (FEOA) was draconian and it will not help the creditors. Mallya had last month approached the high court challenging a January 5 order of a special Prevention of Money Laundering Act (PMLA) court declaring him a fugitive economic offender under the FEO Act. As per provisions of the Act, once a person is declared a fugitive, his properties can be confiscated by the prosecuting agency, Enforcement Directorate (ED). Mallya’s counsel Amit Desai on Monday told a division bench of Justices I A Mahanty and A M Badar that the ED confiscating the properties will not help the creditors. “Confiscating is draconian. The need of the hour is to deal with the banks and creditors. Mallya does not want the properties to be returned to him. We are only saying that confiscation by the government is not going to solve the problems of the banks and creditors,” Desai said. The ED, while opposing the petition, argued that the object of the Act was to ensure the return of a person who is evading arrest in India. “These proceedings are to ensure that these persons who commit fraud and leave the country are brought back. The moment Mallya returns to India, the provisions of this Act and the process initiated under it shall become null and void,” ED said. The bench has posted the petition for further hearing on April 24. However, the next hearing on ED’s application before the special court, seeking permission to start confiscation proceedings, is scheduled for April 8.

Vijay Mallya tells Bombay HC: Confiscating properties draconian, not help creditors

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