Sunny Side Up: Indian LOC for steel?
9 months ago
The Indian Line of Credit (LOC) that has been granted for the purchase of essential items, including food and medicines, is to be used for the purchase of steel and iron required by the construction industry, it is learnt. The Government was earlier planning on procuring raw materials required for the country’s industrial sector under an LOC sought from China for $ 1.5 billion. However, discussions between the two countries have been continuing for several months now on the Chinese LOC as well as a $ 1 billion loan facility for Sri Lanka. According to Chinese Ambassador to Sri Lanka Qi Zhenhong, the $ 2.5 billion financial assistance sought by Sri Lanka has been affected by the Sri Lankan Government’s decision to seek assistance from the International Monetary Fund (IMF). He told a group of journalists last week that the negotiations with the IMF would also affect future loans from China to Sri Lanka, especially since Sri Lanka would have to face strict conditions imposed by the IMF in lieu of assistance.