Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant. &nbsp;

According to a Bloomberg report, the lenders, including Redwood Investments LLC and Silver Point Capital LP, exercised their contractual rights to replace a relative of Byju’s founder, Byju Raveendran, on the board of Byju’s Alpha. Delaware Chancery Court Judge Morgan Zurn ruled in favour of the lenders, rejecting Byju’s complaint that Timothy Pohl, the lenders’ nominee, was improperly authorised to take control. Judge Zurn stated that Pohl's appointment was a consequence of the defaults.&nbsp;

Amid the company's financial distress following the waning of the pandemic-driven surge in online learning, lenders pressed for the repayment of the $1.2 billion loan. Byju’s had been actively managing the loan issue and seeking to sell assets when government investigators conducted searches at the company's offices earlier this year. &nbsp;

The lender dispute also led some investors to devalue their stakes in one of the world's largest ed-tech firms. The lenders clarified that their intention was not to take over the entire ed-tech company but rather to protect their rights through Byju’s Alpha, which served as a holding company, as stated by Brock Czeschin, a lawyer for Red Tree and Silver Lake, in a May court hearing.&nbsp;

The company had previously dismissed the lenders' default claims as baseless. A spokesperson for the lender group expressed satisfaction with the Delaware Chancery Court's acknowledgement of Byju’s repeated loan defaults. The lenders asserted that they reserve all rights available to them.&nbsp;

The loan terms permitted lenders to take control of pledged Byju’s Alpha shares if a default triggered this right, as outlined in Judge Zurn's November 2 ruling. Following a failure to secure the Indian government’s backing as a loan guarantor, lenders filed a notice of default in March. &nbsp;

Timothy Pohl, appointed as the sole director of Byju’s Alpha, assumed the role of CEO after removing all company officers. The legal dispute over the loan was initiated by Glas Trust Co., the trustee for the lenders, which appointed Pohl to oversee Byju’s Alpha on behalf of the creditors.&nbsp;

Byju’s raised concerns about Pohl's compensation, asserting that he, as the former lawyer, was receiving excessive fees. However, Judge Zurn rejected this argument, stating that Pohl's $75,000-per-month pay was authorized by a "status-quo" order entered in the case to safeguard Byju’s Alpha. &nbsp;

(With inputs from Bloomberg)&nbsp;

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Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant.

Indian ed-tech startup, Byju’s, faced a setback as lenders successfully claimed a default on a $1.2 billion loan, enabling them to assume control of a unit of the education-technology giant. According to a Bloomberg report, the lenders, including Redwood Investments LLC and Silver Point Capital LP, exercised their contractual rights to replace a relative of Byju’s founder, Byju Raveendran, on the board of Byju’s Alpha. Delaware Chancery Court Judge Morgan Zurn ruled in favour of the lenders, rejecting Byju’s complaint that Timothy Pohl, the lenders’ nominee, was improperly authorised to take control. Judge Zurn stated that Pohl's appointment was a consequence of the defaults. Amid the company's financial distress following the waning of the pandemic-driven surge in online learning, lenders pressed for the repayment of the $1.2 billion loan. Byju’s had been actively managing the loan issue and seeking to sell assets when government investigators conducted searches at the company's offices earlier this year. The lender dispute also led some investors to devalue their stakes in one of the world's largest ed-tech firms. The lenders clarified that their intention was not to take over the entire ed-tech company but rather to protect their rights through Byju’s Alpha, which served as a holding company, as stated by Brock Czeschin, a lawyer for Red Tree and Silver Lake, in a May court hearing. The company had previously dismissed the lenders' default claims as baseless. A spokesperson for the lender group expressed satisfaction with the Delaware Chancery Court's acknowledgement of Byju’s repeated loan defaults. The lenders asserted that they reserve all rights available to them. The loan terms permitted lenders to take control of pledged Byju’s Alpha shares if a default triggered this right, as outlined in Judge Zurn's November 2 ruling. Following a failure to secure the Indian government’s backing as a loan guarantor, lenders filed a notice of default in March. Timothy Pohl, appointed as the sole director of Byju’s Alpha, assumed the role of CEO after removing all company officers. The legal dispute over the loan was initiated by Glas Trust Co., the trustee for the lenders, which appointed Pohl to oversee Byju’s Alpha on behalf of the creditors. Byju’s raised concerns about Pohl's compensation, asserting that he, as the former lawyer, was receiving excessive fees. However, Judge Zurn rejected this argument, stating that Pohl's $75,000-per-month pay was authorized by a "status-quo" order entered in the case to safeguard Byju’s Alpha. (With inputs from Bloomberg) WATCH WION LIVE HERE

Byju’s lenders prevail in legal battle over loan default, assert control of unit 

The International Monetary Fund (IMF) on Thursday (Oct 19) announced that it has finalised an agreement with Sri Lanka for the disbursal of the second tranche of a $3 billion loan to aid the recovery of the country from its worst-ever economic crisis. 
 
The recommendation to provide around $330 million to the South Asian country was made after an agreement was reached&nbsp;over the&nbsp;first review of the four-year Extended Fund Facility (EFF) agreement which was signed up in March, said the International Monetary Fund (IMF), in a statement. 
 
It added that the release of the funds depended on the approval of its executive board. Last year, the government of Sri Lanka defaulted on its $46 billion debt at a time when millions of people faced months of fuel and food shortages. 
 
"The authorities remain committed to the ambitious reform agenda under the EFF and their reform efforts have been commendable," said IMF Senior Mission Chief for Sri Lanka, Peter Breuer, and his deputy, Katsiaryna Svirydzenka, in a statement.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/chinas-property-market-could-slow-down-asias-economy-imf-648293">China’s property market could slow down Asia's economy: IMF</a>

The IMF emphasised Sri Lanka's "rapid" disinflation from 70 per cent in September last year to only 1.3 per cent by September this year, along with a "significant fiscal adjustment expected by the end of this year." 
 
The IMF added that there was an increase of $1.5 billion in gross international reserves between March and June this year, as the shortage of essential items declined. 
 
However, "despite these early signs of stabilisation, full economic recovery is not yet assured," they stated.

<h2>China aims to deepen 'mutual trust' with Sri Lanka, says Xi after debt deal</h2>

Chinese President Xi Jinping, while speaking to his Sri Lankan counterpart Ranil Wickremesinghe on Friday (Oct 20), said that it will aim to deepen "mutual trust" with Sri Lanka, which is trying hard to recover from its worst-ever economic crisis. 
 
China is the biggest creditor of Sri Lanka and needs to give its approval for any proposal made by Colombo with the aim of restructuring its debt. 
 
The deputy finance minister of Sri Lanka last week said that the state-owned Export-Import Bank of China had permitted a reorganisation of the finances of the country.

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On Friday, Xi and Wickremesinghe held talks in Beijing after 130 government representatives were hosted by China for a forum of its Belt and Road trade and infrastructure initiative. 
 
"Under (your) leadership, Sri Lanka has gone through its most difficult period, and its economy and society have resumed orderly development," said Xi, as per the state broadcaster CCTV. 
 
"I am willing to work with (you) to consolidate political mutual trust between our two sides (and) jointly build a high-quality Belt and Road," he further stated. 
 
Xi said that Beijing was willing to "promote a China-Sri Lanka strategic cooperative partnership built on sincere mutual assistance and everlasting friendship, to continuously achieve new progress".

(With inputs from agencies)

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The International Monetary Fund (IMF) on Thursday (Oct 19) announced that it has finalised an agreement with Sri Lanka for the disbursal of the second tranche of a $3 billion loan to aid the recovery of the country from its worst-ever economic crisis.

The International Monetary Fund (IMF) on Thursday (Oct 19) announced that it has finalised an agreement with Sri Lanka for the disbursal of the second tranche of a $3 billion loan to aid the recovery of the country from its worst-ever economic crisis. The recommendation to provide around $330 million to the South Asian country was made after an agreement was reached over the first review of the four-year Extended Fund Facility (EFF) agreement which was signed up in March, said the International Monetary Fund (IMF), in a statement. It added that the release of the funds depended on the approval of its executive board. Last year, the government of Sri Lanka defaulted on its $46 billion debt at a time when millions of people faced months of fuel and food shortages. "The authorities remain committed to the ambitious reform agenda under the EFF and their reform efforts have been commendable," said IMF Senior Mission Chief for Sri Lanka, Peter Breuer, and his deputy, Katsiaryna Svirydzenka, in a statement. ALSO READ | China’s property market could slow down Asia's economy: IMF The IMF emphasised Sri Lanka's "rapid" disinflation from 70 per cent in September last year to only 1.3 per cent by September this year, along with a "significant fiscal adjustment expected by the end of this year." The IMF added that there was an increase of $1.5 billion in gross international reserves between March and June this year, as the shortage of essential items declined. However, "despite these early signs of stabilisation, full economic recovery is not yet assured," they stated. China aims to deepen 'mutual trust' with Sri Lanka, says Xi after debt deal Chinese President Xi Jinping, while speaking to his Sri Lankan counterpart Ranil Wickremesinghe on Friday (Oct 20), said that it will aim to deepen "mutual trust" with Sri Lanka, which is trying hard to recover from its worst-ever economic crisis. China is the biggest creditor of Sri Lanka and needs to give its approval for any proposal made by Colombo with the aim of restructuring its debt. The deputy finance minister of Sri Lanka last week said that the state-owned Export-Import Bank of China had permitted a reorganisation of the finances of the country. WATCH | IMF urges more reforms in India On Friday, Xi and Wickremesinghe held talks in Beijing after 130 government representatives were hosted by China for a forum of its Belt and Road trade and infrastructure initiative. "Under (your) leadership, Sri Lanka has gone through its most difficult period, and its economy and society have resumed orderly development," said Xi, as per the state broadcaster CCTV. "I am willing to work with (you) to consolidate political mutual trust between our two sides (and) jointly build a high-quality Belt and Road," he further stated. Xi said that Beijing was willing to "promote a China-Sri Lanka strategic cooperative partnership built on sincere mutual assistance and everlasting friendship, to continuously achieve new progress". (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Sri Lanka, IMF finalise agreement for second tranche of $3 billion loan

The world bank is in talks to provide a 1 billion dollar loan to help south africa reform its energy sector, as the country tries to overcome record power cuts that have crippled the economy. A Reuters report states that the loan, which would be given to the government rather than to state utility Eskom, is under discussion.

World bank loan likely for South Africa

State Bank of India (SBI) has found an innovative strategy, that involves chocolates, in order to ensure timely repayments. This unique way by the country's largest lender is particularly to tackle loan defaults from retail borrowers, PTI news agency said. SBI is planning to greet borrowers at risk of defaulting on their monthly installments with a gift of chocolates.&nbsp;SBI observed that borrowers about to default often ignore reminder calls from the bank. As a result, SBI has decided to take a more personal approach by visiting these borrowers unannounced at their homes.

This move comes as retail lending in the banking system is on the rise, accompanied by an increase in delinquency levels due to rising interest rates.

In the June 2023 quarter, SBI's retail loan portfolio grew by over 16.46 per cent to ₹12,04,279 crore from ₹10,34,111 crore in the previous year.

This makes retail loans the largest asset class for SBI, which has a total book size of ₹33,03,731 crore, growing at a rate of 13.9 per cent&nbsp;year-on-year.

Also Read | <a href="https://www.wionews.com/india-news/india-canada-fta-talks-on-hold-canadian-minister-postpones-trade-mission-to-new-delhi-636525">India-Canada FTA talks on hold; Canadian minister postpones trade mission to New Delhi</a>

<h2>Handing out chocolates</h2>

SBI is collaborating with fintech companies that utilise artificial intelligence to implement this unique strategy.

When borrowers are identified as likely to default, representatives from these fintech firms visit them, carrying a pack of chocolates as a friendly gesture, and remind them of their upcoming installments to be paid.&nbsp;

Ashwini Kumar Tewari, managing director in-charge of risk, compliance, and stressed assets at SBI, reportedly said,&nbsp;"With two fintech firms which use artificial intelligence, we are piloting a novel way of reminding our retail borrowers of their repayment obligations. While one is doing conciliation with borrowers, the other is alerting us on the propensity of a borrower to default. And to such borrowers who are likely to default, the representatives from this fintech will visit them, carrying a pack of chocolates for each of them, and remind them of the forthcoming EMIs."&nbsp;

Also Read | <a href="https://www.wionews.com/business-economy/britain-to-pump-621mn-into-tata-steel-to-decarbonise-its-welsh-site-636364">UK government pumps $621mn into Tata Steel to decarbonise its Welsh site; 3,000 jobs at risk</a>

<h2>Positive outcomes so far</h2>

According to Tewari, this approach has yielded impressive results.

However, the bank has not disclosed the names of these fintech partners as the initiative is still in the pilot stage, having commenced just 15 days ago. Tewari mentioned that if successful, SBI will formally announce the partnership.

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<h2>Future expansion of initiative</h2>

SBI is also exploring collaborations with other fintech companies to enhance their collection efficiency.&nbsp;

"We are also talking to a few other fintechs to improve our collection efficiencies and hopefully by the end of the year, we will have formally tied up with at least half of them," he said, adding, "we want to continue the pilot for at least four to five months."

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State Bank of India (SBI) has found an innovative strategy, that involves chocolates, in order to ensure timely repayments. This unique way by the country's largest lender is particularly to tackle loan defaults from retail borrowers, PTI news agency said.

State Bank of India (SBI) has found an innovative strategy, that involves chocolates, in order to ensure timely repayments. This unique way by the country's largest lender is particularly to tackle loan defaults from retail borrowers, PTI news agency said. SBI is planning to greet borrowers at risk of defaulting on their monthly installments with a gift of chocolates. SBI observed that borrowers about to default often ignore reminder calls from the bank. As a result, SBI has decided to take a more personal approach by visiting these borrowers unannounced at their homes. This move comes as retail lending in the banking system is on the rise, accompanied by an increase in delinquency levels due to rising interest rates. In the June 2023 quarter, SBI's retail loan portfolio grew by over 16.46 per cent to ₹12,04,279 crore from ₹10,34,111 crore in the previous year. This makes retail loans the largest asset class for SBI, which has a total book size of ₹33,03,731 crore, growing at a rate of 13.9 per cent year-on-year. Also Read | India-Canada FTA talks on hold; Canadian minister postpones trade mission to New Delhi Handing out chocolates SBI is collaborating with fintech companies that utilise artificial intelligence to implement this unique strategy. When borrowers are identified as likely to default, representatives from these fintech firms visit them, carrying a pack of chocolates as a friendly gesture, and remind them of their upcoming installments to be paid. Ashwini Kumar Tewari, managing director in-charge of risk, compliance, and stressed assets at SBI, reportedly said, "With two fintech firms which use artificial intelligence, we are piloting a novel way of reminding our retail borrowers of their repayment obligations. While one is doing conciliation with borrowers, the other is alerting us on the propensity of a borrower to default. And to such borrowers who are likely to default, the representatives from this fintech will visit them, carrying a pack of chocolates for each of them, and remind them of the forthcoming EMIs." Also Read | UK government pumps $621mn into Tata Steel to decarbonise its Welsh site; 3,000 jobs at risk Positive outcomes so far According to Tewari, this approach has yielded impressive results. However, the bank has not disclosed the names of these fintech partners as the initiative is still in the pilot stage, having commenced just 15 days ago. Tewari mentioned that if successful, SBI will formally announce the partnership. Watch | Chinese city hunts for 5 runaway crocodiles × Future expansion of initiative SBI is also exploring collaborations with other fintech companies to enhance their collection efficiency. "We are also talking to a few other fintechs to improve our collection efficiencies and hopefully by the end of the year, we will have formally tied up with at least half of them," he said, adding, "we want to continue the pilot for at least four to five months." 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. ×

Indian bank finds unique way to tackle loan defaulters, it involves chocolates...

In a bid to assuage the concerns of lenders, Indian edtech giant Byjus has&nbsp;proposed&nbsp;to pay back its whole $1.2 billion term loan in less than six months, sources familiar with the matter told Bloomberg.&nbsp;

According to those&nbsp;sources, who requested anonymity, the corporation is willing to return $300 million of the distressed debt within three months if the amendment proposal is approved, and the remaining amount within the following three months. The sources added that the lenders are studying the idea and are looking for further information regarding how the payback will be funded.

For nearly a year, Byju’s and its lenders have been at odds while attempts to renegotiate the terms of their loan deal have fallen through. One of the largest term loans taken out by a startup in the world, the company decided to skip an interest payment, escalating the conflict that is the root of its growing hardship.

The five-year loan was raised by the company in 2021 to support its expansion outside of India; its parent company is officially known as Think &amp; Learn Pvt.

According to data gathered by Bloomberg, the loan is currently valued at 49.8 cents on the dollar. Generally, a rating below 70 is seen as distressed.

(With inputs from Bloomberg)

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In a bid to assuage the concerns of lenders, Indian edtech giant Byjus has proposed to pay back its whole $1.2 billion term loan in less than six months, sources familiar with the matter told Bloomberg.

In a bid to assuage the concerns of lenders, Indian edtech giant Byjus has proposed to pay back its whole $1.2 billion term loan in less than six months, sources familiar with the matter told Bloomberg. According to those sources, who requested anonymity, the corporation is willing to return $300 million of the distressed debt within three months if the amendment proposal is approved, and the remaining amount within the following three months. The sources added that the lenders are studying the idea and are looking for further information regarding how the payback will be funded. For nearly a year, Byju’s and its lenders have been at odds while attempts to renegotiate the terms of their loan deal have fallen through. One of the largest term loans taken out by a startup in the world, the company decided to skip an interest payment, escalating the conflict that is the root of its growing hardship. The five-year loan was raised by the company in 2021 to support its expansion outside of India; its parent company is officially known as Think & Learn Pvt. According to data gathered by Bloomberg, the loan is currently valued at 49.8 cents on the dollar. Generally, a rating below 70 is seen as distressed. (With inputs from Bloomberg) WATCH WION LIVE HERE

Byju’s surprises lenders with a $1.2 billion repayment offer

With the aim of bolstering Pakistan’s economic prospects, Saudi Arabia has announced an investment of 25 billion dollars. This substantial influx of capital is slated to unfold over the next two to five years and will target key sectors, including mining, agriculture, and information technology.

Saudi Arabia’s $25 bn lifeline for Pakistan

In a major relief for the economically struggling Argentina, the international monetary fund has approved a 7.5 billion dollar package to the South American nation. the package is a part of a re-financed 44 billion dollar program that has endured months of negotiations amid political uncertainty and wrangling over economic policy.

$7.5 billion IMF package for Argentina

One of the world’s most distinctive financers, R Thyagarajan, who founded the Shriram Group, has impacted several lives by lending to low-income borrowers.

Content with his small house and his $5,000 car, Thyagarajan gave away a major chunk of his wealth to his employees. A pioneer in providing loans to India’s poor for trucks, tractors, and other vehicles, Thyagarajan turned Shriram into a conglomerate that offers services ranging from stockbroking to insurance.

Shriram’s share prices recorded a record high in July after rising by over 35 per cent this year -- more than four times as much as India’s benchmark stock index.

Now 86, Thyagarajan has taken up an advisory role.

In an interview with Bloomberg, he claimed that he got into the business to prove that lending to those without credit records or steady incomes was not unsafe as it is thought to be. He maintained that his method of doing business is relatively ordinary.

“I’m a bit of a leftist,” Bloomberg quoted Thyagarajan as saying in Chennai, where he founded the company in 1974. “I was never enthusiastic about making life pleasanter for people who already have a good life.” Rather, I “wanted to take away some unpleasantness in the lives of people who are getting into problems.”

Thyagarajan’s career illustrates the unrealised potential in the country with the largest population in the world, where an increasing number of its 1.4 billion citizens aim to join the expanding middle class.

However, roughly 25 per cent of Indians lack access to established financial systems. The World Bank estimates that one in three people, who have bank accounts in India, never use them.

Thyagarajan stated that lending to the poor is a sort of socialism. But he has attempted to show that the business can be secure and successful by providing a less expensive alternative to the heavy rates accessible to the unbanked. By doing so, he has convinced other businesses to lower borrowing costs.

The industry is now quite profitable. There are around 9,400 so-called shadow banks in India, most of which provide financial services to borrowers who are passed over by traditional lenders.

Building an Empire

For a man who was raised in a wealthy family in the state of Tamil Nadu, surrounded by servants, founding a lending company with socialist ideals may seem like an odd career decision. However, Thyagarajan asserted that he has always had an analytical and egalitarian mindset.

Before spending three years at the Indian Statistical Institute in Kolkata, he completed his undergraduate and graduate studies in mathematics in Chennai.

He began a 20-year career in finance as an employee at New India Assurance Co., one of India’s leading insurers, in 1961. It included employment at reinsurance broker JB Boda &amp; Co. and local lender Vysya Bank.

People in Chennai approached him along the route looking for money to purchase used trucks, and he provided loans to them from his inheritance. That side business eventually turned into his primary venture. He co-founded Shriram Chits with friends and family when he was 37.

The unbanked frequently relied on “chit funds”, a form of group savings where each participant contributes a certain amount each month. One investor receives a portion of the amount each month until everyone has gotten a certain amount. The funds are used to pay for farm equipment, tuition, or other substantial purchases.

Thyagarajan established additional businesses over time, and Shriram eventually expanded to include more than 30 companies.

Living Modestly

Tyagarajan drove a Hyundai hatchback for many years. He also does not own a mobile phone, which he regards as a distraction.

All of the tycoon’s shareholdings in Shriram firms were transferred to the Shriram Ownership Trust, which was established in 2006. Beneficiaries of the perpetual trust include 44 group executives. When executives retire, they take millions of dollars with them.

The entire worth of the trust’s holdings exceeds $750 million and has increased in recent years.

Thyagarajan told Bloomberg that he did not need the money then or now, and that he enjoys simple things.

Thyagarajan’s only regret -- the manner in which he gave away his wealth. He said he would have split the bounty if he had known how profitable Shriram would become.

“I did not imagine that so much money was going to be distributed to so few,” he says. “I’m not very happy about it. But it’s okay. I’m not very sad either,” he said in the interview.

(With inputs from agencies)

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One of the world’s most distinctive financers, R Thyagarajan, who founded the Shriram Group, has impacted several lives by lending to low-income borrowers. Content with his small house and his $5,000 car, Thyagarajan gave away a major chunk of his wealth to his employees.

One of the world’s most distinctive financers, R Thyagarajan, who founded the Shriram Group, has impacted several lives by lending to low-income borrowers. Content with his small house and his $5,000 car, Thyagarajan gave away a major chunk of his wealth to his employees. A pioneer in providing loans to India’s poor for trucks, tractors, and other vehicles, Thyagarajan turned Shriram into a conglomerate that offers services ranging from stockbroking to insurance. Shriram’s share prices recorded a record high in July after rising by over 35 per cent this year -- more than four times as much as India’s benchmark stock index. Now 86, Thyagarajan has taken up an advisory role. In an interview with Bloomberg, he claimed that he got into the business to prove that lending to those without credit records or steady incomes was not unsafe as it is thought to be. He maintained that his method of doing business is relatively ordinary. “I’m a bit of a leftist,” Bloomberg quoted Thyagarajan as saying in Chennai, where he founded the company in 1974. “I was never enthusiastic about making life pleasanter for people who already have a good life.” Rather, I “wanted to take away some unpleasantness in the lives of people who are getting into problems.” Thyagarajan’s career illustrates the unrealised potential in the country with the largest population in the world, where an increasing number of its 1.4 billion citizens aim to join the expanding middle class. However, roughly 25 per cent of Indians lack access to established financial systems. The World Bank estimates that one in three people, who have bank accounts in India, never use them. Thyagarajan stated that lending to the poor is a sort of socialism. But he has attempted to show that the business can be secure and successful by providing a less expensive alternative to the heavy rates accessible to the unbanked. By doing so, he has convinced other businesses to lower borrowing costs. The industry is now quite profitable. There are around 9,400 so-called shadow banks in India, most of which provide financial services to borrowers who are passed over by traditional lenders. Building an Empire For a man who was raised in a wealthy family in the state of Tamil Nadu, surrounded by servants, founding a lending company with socialist ideals may seem like an odd career decision. However, Thyagarajan asserted that he has always had an analytical and egalitarian mindset. Before spending three years at the Indian Statistical Institute in Kolkata, he completed his undergraduate and graduate studies in mathematics in Chennai. He began a 20-year career in finance as an employee at New India Assurance Co., one of India’s leading insurers, in 1961. It included employment at reinsurance broker JB Boda & Co. and local lender Vysya Bank. People in Chennai approached him along the route looking for money to purchase used trucks, and he provided loans to them from his inheritance. That side business eventually turned into his primary venture. He co-founded Shriram Chits with friends and family when he was 37. The unbanked frequently relied on “chit funds”, a form of group savings where each participant contributes a certain amount each month. One investor receives a portion of the amount each month until everyone has gotten a certain amount. The funds are used to pay for farm equipment, tuition, or other substantial purchases. Thyagarajan established additional businesses over time, and Shriram eventually expanded to include more than 30 companies. Living Modestly Tyagarajan drove a Hyundai hatchback for many years. He also does not own a mobile phone, which he regards as a distraction. All of the tycoon’s shareholdings in Shriram firms were transferred to the Shriram Ownership Trust, which was established in 2006. Beneficiaries of the perpetual trust include 44 group executives. When executives retire, they take millions of dollars with them. The entire worth of the trust’s holdings exceeds $750 million and has increased in recent years. Thyagarajan told Bloomberg that he did not need the money then or now, and that he enjoys simple things. Thyagarajan’s only regret -- the manner in which he gave away his wealth. He said he would have split the bounty if he had known how profitable Shriram would become. “I did not imagine that so much money was going to be distributed to so few,” he says. “I’m not very happy about it. But it’s okay. I’m not very sad either,” he said in the interview. (With inputs from agencies) WATCH WION LIVE HERE

Meet R Thyagarajan, the man who donated his wealth to employees

Pakistan Prime Minister Shehbaz Sharif confirmed the National Assembly is said to dissolve on the 9th of August three days ahead of its set date.

Pakistan: In absence of consensus, Pakistan poll panel will step in

Top banks have finally spoken about a major threat, which will eventually put pressure on the global economy. Top European banks have pointed out that. Bad loans are going to negatively impact global finance, as well as people's confidence in the banking system.

Top European banks worry about bad loans | World Business Watch

A big relief for cash-strapped Pakistan the international monetary fund has formally approved a three billion dollar package for the struggling South Asian country.

IMF approves $3 billion loan for Pakistan

Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector. 
 
This means that pay cuts and long hours of compulsory ideological training will become a norm in the sector. Since the sector's overhaul was announced in March, the morale has plummeted as stated by four executives who are working at state financial institutions. 
 
The plan, which was initiated by President Xi Jinping, is aimed at fighting corruption in the sector and ensuring that it is under the ruling Communist Party's direct control.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/chinas-manufacturing-sector-continues-to-contract-heightening-growth-concerns-610401">China's manufacturing sector continues to contract, heightening growth concerns</a>

The executives stated that the campaign is now their companies' top priority and was expected to run well into autumn. The executives emphasised the uncertainty brought by the “relentless” ideological and anti-corruption drives, sharp pay cuts in their basic salaries, which range from 15 to 20 per cent and slashing of annual bonuses by at least 30 per cent this year.

<h2 lang="en-US">Ideological study session</h2>

A state-owned securities firm's manager in Shanghai stated that his company held a recent ideological study session which was based on the Red Army’s Long March. 
 
“Probably our party secretary wants us to be mentally prepared for tougher times ahead,” he stated. “State-owned financial companies aren’t an exception. They’re also part of China’s austerity drive at a time when the economy isn’t doing well, and as many civil servants get their pay cut too,” he added. 
 
He stated that the financial sector's pay cuts were in accordance with Xi’s “common prosperity” goal to bridge&nbsp;the wealth gap in China. Beijing has promised to end extravagance among “financial elites” in the country's state sector, as Xi makes efforts to make its institutions more compliant with his vision.

WATCH |&nbsp;China: Unauthorised acquisition of data to be termed a 'spying offence'

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As tensions rise between China and the West, the United States in particular, Beijing is appealing to its state banks to allocate more funds in areas which are identified as priorities for the country, such as technology self-reliance projects and advanced manufacturing. 
 
The bankers and financial regulators are also being closely watched by Beijing for any sign of collusion with any foreign financial institutions to facilitate large outflows of Chinese funds. 
 
China has also been concerned about increasing local government debt and wishes lenders to exercise caution on loans, and at the same time is observing the weaker financial institutions amid a banking crisis in the United States.

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Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector.

Executives, who have been working in state-owned financial institutions of China, said that they are bracing for “one of the toughest years” they have seen, as Beijing plans to tighten its grip on the sector. This means that pay cuts and long hours of compulsory ideological training will become a norm in the sector. Since the sector's overhaul was announced in March, the morale has plummeted as stated by four executives who are working at state financial institutions. The plan, which was initiated by President Xi Jinping, is aimed at fighting corruption in the sector and ensuring that it is under the ruling Communist Party's direct control. ALSO READ | China's manufacturing sector continues to contract, heightening growth concerns The executives stated that the campaign is now their companies' top priority and was expected to run well into autumn. The executives emphasised the uncertainty brought by the “relentless” ideological and anti-corruption drives, sharp pay cuts in their basic salaries, which range from 15 to 20 per cent and slashing of annual bonuses by at least 30 per cent this year. Ideological study session A state-owned securities firm's manager in Shanghai stated that his company held a recent ideological study session which was based on the Red Army’s Long March. “Probably our party secretary wants us to be mentally prepared for tougher times ahead,” he stated. “State-owned financial companies aren’t an exception. They’re also part of China’s austerity drive at a time when the economy isn’t doing well, and as many civil servants get their pay cut too,” he added. He stated that the financial sector's pay cuts were in accordance with Xi’s “common prosperity” goal to bridge the wealth gap in China. Beijing has promised to end extravagance among “financial elites” in the country's state sector, as Xi makes efforts to make its institutions more compliant with his vision. WATCH | China: Unauthorised acquisition of data to be termed a 'spying offence' As tensions rise between China and the West, the United States in particular, Beijing is appealing to its state banks to allocate more funds in areas which are identified as priorities for the country, such as technology self-reliance projects and advanced manufacturing. The bankers and financial regulators are also being closely watched by Beijing for any sign of collusion with any foreign financial institutions to facilitate large outflows of Chinese funds. China has also been concerned about increasing local government debt and wishes lenders to exercise caution on loans, and at the same time is observing the weaker financial institutions amid a banking crisis in the United States. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

China’s state-owned financial sector prepares for ‘one of the toughest years’

Cash strapped Pakistan is still hopeful of an international monetary fund package. And in a last ditch effort to secure the loan, it is planning to introduce new taxes to appease the international fund. Pakistan plans to introduce new taxes and raise revenue by $750 million, just days before the new financial year begins on July 1. With the new tax proposals, Pakistan expects to secure at least 1.1 billion dollars in funding.

Pakistan's last-ditch effort for an IMF loan

Pakistan to introduce new taxes to appease IMF

The Russian invasion of Ukraine has caused the greatest humanitarian crisis. Thousands of lives have been lost and millions of livelihoods have been disrupted. The prospects of an end to this prolonged war are uncertain. The nations stepped up to provide financial and humanitarian assistance to Ukraine. One year in, amid the ongoing destruction, the aid required to battle Russia continues to rise. To help Ukraine in its tough time, Britain is ready to provide an extra $500 million in loan guarantees.

Why has UK confirmed further $500 million in loan guarantees for Ukraine?

Alphabet-owned Google has suspended hundreds of loan apps in Kenya providing unsecured personal or business loans. The apps had been taken down after failing to comply with Google's new policy requiring digital lenders to submit proof of licence, according to a TechCrunch report.

Alphabet-owned Google has suspended hundreds of loan apps in Kenya providing unsecured personal or business loans. The apps had been taken down after failing to comply with Google's new policy requiring digital lenders to submit proof of licence, according to a TechCrunch report. It is unclear how many apps have been booted out but expert estimates suggest that the ballpark figure could be around 500 with popular apps like MoKash and Okash receiving the axe. Up until last month, over 600 apps were active on the Play Store but that number has come down to under 200 as of Friday (March 24). After Kenya's central bank issued regulations for Digital Credit Providers (DCPs) last year, the US-based tech giant also published its new policy in January, requiring credit-providing applications to obtain licences from the top bank. According to reports, only 22 digital creditors such as Tala, Pezesha and Jumo had managed to get the licence from the Central Bank of Kenya (CBK) till January. ALSO READ | $100 bn wiped off Alphabet's shares after Google AI chatbot 'Bard' flubs answer The regulations state that any digital lender that is yet to get a licence from CBK can receive an interim approval for Google which is only valid for 45 days. Once the period lapses, the company should either have received the approval or file a declaration that its permit was still pending. However, if the company failed to do so, its interim approval will be rescinded and it will be removed from the app store. WATCH | Tech giants compete for best in AI × The unregulated loan app business has been booming across most countries. However, the exorbitant interest rates and predatory practices employed by the companies to exact the loan amount has tarnished the reputation of the particular digital sector. Google has been steadily moving to curb the menace of digital loan apps. It banned over 2,000 loan apps in India last year by citing violation of norms, misrepresentation of information and questionable offline behaviour as the reason. (With inputs from agencies) WATCH WION LIVE HERE:

Google cracks down on loan apps, removes hundreds from Play Store in Kenya

Sri Lanka's President Ranil Wickremesinghe said on Tuesday that China has agreed to restructure its loans to the bankrupt island nation, clearing the last obstacle to an&nbsp; International Monetary Fund bailout.

China's state-owned Exim Bank "sent a letter to the IMF" on Monday night expressing Beijing's willingness to "restructure" credit to Sri Lanka, Wickremesinghe told parliament.

The Lankan president added that he now expects&nbsp;the first tranche of the IMF package to be released within a month.

"No sooner the letter from the Exim Bank of China went to the IMF, I signed Sri Lanka's Letter of Intent to go with the IMF programme," he said.

Sri Lanka defaulted on its $46-billion foreign debt last April during its economic crisis, which caused months of food and fuel shortages in&nbsp;the South Asian nation.

Just over $14 billion of that is bilateral debt owed to foreign governments, of which China holds 52 per cent.

Wickremesinghe's government has been working to secure a $2.9 billion rescue package from the IMF to restore Sri Lanka's ruined public finances.

His administration has imposed sharp tax hikes, ended subsidies on petrol and electricity, and made plans to sell off loss-making state enterprises to satisfy the terms of the bailout.

(With inputs from agencies)

&nbsp;

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Sri Lanka's President Ranil Wickremesinghe said on Tuesday that China has agreed to restructure its loans to the bankrupt island nation, clearing the last obstacle to an International Monetary Fund bailout.

Sri Lanka's President Ranil Wickremesinghe said on Tuesday that China has agreed to restructure its loans to the bankrupt island nation, clearing the last obstacle to an International Monetary Fund bailout. China's state-owned Exim Bank "sent a letter to the IMF" on Monday night expressing Beijing's willingness to "restructure" credit to Sri Lanka, Wickremesinghe told parliament. The Lankan president added that he now expects the first tranche of the IMF package to be released within a month. "No sooner the letter from the Exim Bank of China went to the IMF, I signed Sri Lanka's Letter of Intent to go with the IMF programme," he said. Sri Lanka defaulted on its $46-billion foreign debt last April during its economic crisis, which caused months of food and fuel shortages in the South Asian nation. Just over $14 billion of that is bilateral debt owed to foreign governments, of which China holds 52 per cent. Wickremesinghe's government has been working to secure a $2.9 billion rescue package from the IMF to restore Sri Lanka's ruined public finances. His administration has imposed sharp tax hikes, ended subsidies on petrol and electricity, and made plans to sell off loss-making state enterprises to satisfy the terms of the bailout. (With inputs from agencies) WATCH WION LIVE HERE

Sri Lanka president Ranil Wickremesinghe says China has agreed to restructure its loan

BBC chair Richard Sharp has been accused of facilitating a loan to former UK PM Boris Johnson under the table. The state-owned broadcaster that loves to point fingers at others now has its own mess to deal with. Priyanka Sharma reports.

Gravitas: BBC chair helped Boris Johnson secure loan guarantee?

Pakistan and the International Monetary Fund (IMF) is said to have reached an "agreement" unlocking over a $1 billion loan tranche under Extended Fund Facility (EFF) that had been stalled for the last five months, the country's local media outlet Geo News reported.&nbsp;&nbsp;

Secretary of Finance Hamed Sheikh, in a statement released late Thursday night, said that "an agreement has already been struck with the IMF on prerequisite measures”.&nbsp;He added that the IMF mission which is headed by Nathan Porter will now release a detailed statement after getting approval from Washington.

"The negotiations with the IMF have been completed. The IMF has handed over the MEFP [Memorandum of Economic and Financial Policies] document [to Pakistan]," he added.

This loan tranche is part of a $6 billion bailout package which former Pakistani PM Imran Khan signed in 2019. The multibillion-dollar bailout package was signed to help Pakistan's crippling economy. However, since then the package has been delayed after the controversy over $1.5 billion subsidy package announced by Khan which IMF asked how Pakistan will fund.&nbsp;

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The agreement can be seen as a massive relief to Pakistan's cash-strapped economy. It comes after 10 days of "tough" talks. The IMF mission has been in Islamabad since 31 January and has been engaging with the Pakistani government over the bailout package negotiations.&nbsp;

Also Read | <a href="https://www.wionews.com/trending/meet-ghost-a-four-year-old-bull-terrier-mix-who-was-living-with-coyote-pack-in-nevada-560422">Meet Ghost, a four-year-old bull terrier mix who was living with coyote pack in Nevada</a>

Earlier in the day, while sharing an update on the talks, the country's Finance Minister Ishaq Dar gave a positive signal saying the talks were "on track."&nbsp;Pakistan's economic state continues to remain in a dire state with high inflation, currency depreciation, and slumping of foreign exchange reserves to $2.91 billion.

Watch | <a href="https://www.wionews.com/videos/us-aftermath-of-chinas-spy-balloon-560414">US: Aftermath of China's spy balloon</a>

After the subsidy fiasco under the Imran government, the programme was stalled but the incumbent coalition government led by Shehbaz Sharif resumed the programme. In August, Pakistan received around $1.17 billion under the seventh and eighth reviews of the Extended Fund Facility (EFF).

However, the programme had again hit a snag in September after failed negotiations.&nbsp;

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Pakistan and the International Monetary Fund (IMF) is said to have reached an "agreement" unlocking over a $1 billion loan tranche under Extended Fund Facility (EFF) that had been stalled for the last five months, the country's local media outlet Geo News reported.

Pakistan and the International Monetary Fund (IMF) is said to have reached an "agreement" unlocking over a $1 billion loan tranche under Extended Fund Facility (EFF) that had been stalled for the last five months, the country's local media outlet Geo News reported. Secretary of Finance Hamed Sheikh, in a statement released late Thursday night, said that "an agreement has already been struck with the IMF on prerequisite measures”. He added that the IMF mission which is headed by Nathan Porter will now release a detailed statement after getting approval from Washington. "The negotiations with the IMF have been completed. The IMF has handed over the MEFP [Memorandum of Economic and Financial Policies] document [to Pakistan]," he added. This loan tranche is part of a $6 billion bailout package which former Pakistani PM Imran Khan signed in 2019. The multibillion-dollar bailout package was signed to help Pakistan's crippling economy. However, since then the package has been delayed after the controversy over $1.5 billion subsidy package announced by Khan which IMF asked how Pakistan will fund. Also Read | Animal Rights advocates ask US government to probe Elon Musk's Neuralink The agreement can be seen as a massive relief to Pakistan's cash-strapped economy. It comes after 10 days of "tough" talks. The IMF mission has been in Islamabad since 31 January and has been engaging with the Pakistani government over the bailout package negotiations. Also Read | Meet Ghost, a four-year-old bull terrier mix who was living with coyote pack in Nevada Earlier in the day, while sharing an update on the talks, the country's Finance Minister Ishaq Dar gave a positive signal saying the talks were "on track." Pakistan's economic state continues to remain in a dire state with high inflation, currency depreciation, and slumping of foreign exchange reserves to $2.91 billion. Watch | US: Aftermath of China's spy balloon After the subsidy fiasco under the Imran government, the programme was stalled but the incumbent coalition government led by Shehbaz Sharif resumed the programme. In August, Pakistan received around $1.17 billion under the seventh and eighth reviews of the Extended Fund Facility (EFF). However, the programme had again hit a snag in September after failed negotiations. 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.

Pakistan, IMF strike agreement on stalled bailout package, official announcement expected soon

The United Arab Emirates (UAE) agreed to extend an existing loan of $2 billion and provide an additional loan of $1 billion to help cash-strapped Pakistan tackle its economic woes, including the fast-depleting foreign exchange reserves. Watch this report to know more about Pakistan's precarious situation.

This World: UAE pledges an additional loan of $1 billion to help Pakistan

American financial behemoth Wells Fargo has decided to pay $3.7 billion to settle loan violations, making it the largest fine to be levelled against a bank.

The bank has been accused of harming consumers by charging illegal fees and interest on auto loans and mortgages, and incorrectly applying overdraft fees against savings and checking accounts.

On Tuesday, the Consumer Financial Protection Bureau (CFPB) ordered Wells to repay $2 billion to consumers and enacted a $1.7 billion penalty against the bank.

The bureau blamed the bank’s bad behaviour that impacted more than 16 million customers.

“Put simply: Wells Fargo is a corporate recidivist that puts one out of three Americans at risk for potential harm,” said CFPB Director Rohit Chopra, in a call with reporters.

He said that the bank’s behaviour prompted the regulators to take additional actions against Wells Fargo that go beyond the $3.7 billion in fines and penalties.

In a statement, Wells Fargo CEO Charles Scharf said that the agreement with the CFPB is part of an effort to "transform operating practices at Wells Fargo and to put these issues behind us.”

“Our top priority is to continue to build a risk and control infrastructure that reflects the size and complexity of Wells Fargo and run the company in a more controlled, disciplined way,” Scharf said,

Wells Fargo has been repeatedly sanctioned by US regulators for breaching the consumer protection laws going back to 2016, when employees opened millions of accounts illegally in order to meet unrealistic sales goals.

Despite the warnings, the bank only intensified its malpractices after it was found to be in violation of other parts of consumer protection law, including in its auto and mortgage lending businesses.

In 2018, Wells Fargo coughed up $1 billion penalty for widespread consumer law violations, the largest against a bank for such violations at the time.

(With inputs from agencies)

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American financial behemoth Wells Fargo has decided to pay $3.7 billion to settle loan violations, making it the largest fine to be levelled against a bank. The bank has been accused of harming consumers by charging illegal fees and interest on auto loans and mortgages, and incorrectly applying overdraft fees against savings and checking accounts.

American financial behemoth Wells Fargo has decided to pay $3.7 billion to settle loan violations, making it the largest fine to be levelled against a bank. The bank has been accused of harming consumers by charging illegal fees and interest on auto loans and mortgages, and incorrectly applying overdraft fees against savings and checking accounts. On Tuesday, the Consumer Financial Protection Bureau (CFPB) ordered Wells to repay $2 billion to consumers and enacted a $1.7 billion penalty against the bank. The bureau blamed the bank’s bad behaviour that impacted more than 16 million customers. “Put simply: Wells Fargo is a corporate recidivist that puts one out of three Americans at risk for potential harm,” said CFPB Director Rohit Chopra, in a call with reporters. He said that the bank’s behaviour prompted the regulators to take additional actions against Wells Fargo that go beyond the $3.7 billion in fines and penalties. In a statement, Wells Fargo CEO Charles Scharf said that the agreement with the CFPB is part of an effort to "transform operating practices at Wells Fargo and to put these issues behind us.” “Our top priority is to continue to build a risk and control infrastructure that reflects the size and complexity of Wells Fargo and run the company in a more controlled, disciplined way,” Scharf said, Wells Fargo has been repeatedly sanctioned by US regulators for breaching the consumer protection laws going back to 2016, when employees opened millions of accounts illegally in order to meet unrealistic sales goals. Despite the warnings, the bank only intensified its malpractices after it was found to be in violation of other parts of consumer protection law, including in its auto and mortgage lending businesses. In 2018, Wells Fargo coughed up $1 billion penalty for widespread consumer law violations, the largest against a bank for such violations at the time. (With inputs from agencies) WATCH WION LIVE HERE:

Wells Fargo ordered to pay $3.7 billion fine for consumer loan violations, largest ever penalty against a bank

After months of reeling under the worst economic crisis, Sri Lanka is hoping that growth returns to the nation. The country is expecting as much as $5 billion in loans next year from multilateral agencies besides an IMF deal, while the government is aiming to raise up to $3 billion via restructuring of state assets.

Sri Lanka expecting $5 bn in loans from multilateral agencies

India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per&nbsp;the Verite Research think tank.&nbsp;

India is followed by the Asian Development Bank (ADB) with loans totalling USD 360 million. They make up about 76 per cent&nbsp;of all disbursements&nbsp;from January to April 2022.&nbsp;

According to Verite Research, a Colombo-based independent interdisciplinary think tank that offers strategic analysis and advice for governments and the private sector in Asia, India has emerged as Sri Lanka's largest bilateral lender with a contribution of USD 377 million out of a total disbursement of loans amounting to USD 968 million in the first four months of this year.

China has been Sri Lanka's largest bilateral lender between 2017 and 2021. China contributed USD 947 million in 2021, of which USD 809 million came from loans taken out with the China Development Bank. The major multilateral lender during that time was the ADB.&nbsp;

India's credit lines allowed Sri Lanka to buy petrol and necessities at the start of this year when it was experiencing its greatest economic crisis.&nbsp;

According to the Indian High Commission in this city, India has provided roughly USD 4 billion in overall credit support to Sri Lanka this year, including currency swaps.

Also Read:&nbsp;<a href="https://www.wionews.com/world/kyiv-astronomical-observatory-claims-ufos-hovering-over-ukrainian-skies-516449">Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies</a>

Gotabaya Rajapaksa was removed from office in mid-July as a result of the public demonstrations that have been taking place since the end of March in response to the economic hardships and shortages of basic necessities.&nbsp;

When India's 700 million USD dedicated credit line for fuel imports ran out in late June, there were long lines for petrol at Indian Oil Company retail stations. At the time, the state fuel company solely provided fuel to emergency services.&nbsp;

Recently, Sri Lanka and the IMF reached an agreement for a USD 2.9 billion loan facility, which is contingent upon a debt restructuring agreement between Sri Lanka and its creditors.&nbsp;

Due to the currency crisis, Sri Lanka declared its default on its international debt in mid-April. The nation has a foreign debt of USD 51 billion, of which USD 28 billion must be paid by 2027.

(with inputs from, agencies)

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India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per the Verite Research think tank.

India has become Sri Lanka's biggest lender in 2022, providing the island nation with loans of USD 377 million as it battled an unprecedented political crisis and economic unrest, as per the Verite Research think tank. India is followed by the Asian Development Bank (ADB) with loans totalling USD 360 million. They make up about 76 per cent of all disbursements from January to April 2022. According to Verite Research, a Colombo-based independent interdisciplinary think tank that offers strategic analysis and advice for governments and the private sector in Asia, India has emerged as Sri Lanka's largest bilateral lender with a contribution of USD 377 million out of a total disbursement of loans amounting to USD 968 million in the first four months of this year. China has been Sri Lanka's largest bilateral lender between 2017 and 2021. China contributed USD 947 million in 2021, of which USD 809 million came from loans taken out with the China Development Bank. The major multilateral lender during that time was the ADB. India's credit lines allowed Sri Lanka to buy petrol and necessities at the start of this year when it was experiencing its greatest economic crisis. According to the Indian High Commission in this city, India has provided roughly USD 4 billion in overall credit support to Sri Lanka this year, including currency swaps. Also Read: Kyiv astronomical observatory claims UFOs hovering over Ukrainian skies Gotabaya Rajapaksa was removed from office in mid-July as a result of the public demonstrations that have been taking place since the end of March in response to the economic hardships and shortages of basic necessities. When India's 700 million USD dedicated credit line for fuel imports ran out in late June, there were long lines for petrol at Indian Oil Company retail stations. At the time, the state fuel company solely provided fuel to emergency services. Recently, Sri Lanka and the IMF reached an agreement for a USD 2.9 billion loan facility, which is contingent upon a debt restructuring agreement between Sri Lanka and its creditors. Due to the currency crisis, Sri Lanka declared its default on its international debt in mid-April. The nation has a foreign debt of USD 51 billion, of which USD 28 billion must be paid by 2027. (with inputs from, agencies)

With USD 377 million in loans, India is Sri Lanka's top lender in 2022: Report

Sri Lanka and the International Monetary Fund (IMF) have reached a preliminary agreement on an emergency loan to the crisis-hit country and a formal announcement will be made on Thursday.

WION Dispatch | Reports: Sri Lanka seals staff-level agreement with IMF on loan

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