The government of Sri Lanka and the Hungarian Export Credit Insurance Plc. have signed a bilateral agreement in relation to the External Debt Restructuring Process, the Ministry of Finance, Planning and Economic Development said in a statement.

The Finance Ministry said the signing of the agreement with the Hungarian Export Credit Insurance Plc, is a significant milestone of the External Debt Restructuring Process and testament to the government’s commitment to conclude the restructuring process as soon as possible to restore debt sustainability and thereby revamp Sri Lanka’s economy. 

Following bilateral discussions after the conclusion of the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC), the Hungarian Export Credit Insurance Plc. has agreed to provide a debt relief measure by rescheduling the outstanding debts, the Ministry noted.

The estimated rescheduled debt under this agreement amounts to Euro 30 million.

The signing of the agreement will pave the way to developing further the deep and long standing bilateral relationships between Hungary and the Government of Sri Lanka, the Ministry added.

The bilateral agreement was signed by Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning, and Economic Development, on behalf of the government and Györgyi Rehoregh, Director, Foreign Corporate Risk Management & Claims and Recoveries Directorate, and Dr. Adrienn Hegyi Szénásiné, Head of Claims and Recoveries, Foreign Corporate Risk Management and Claims and Recoveries Directorate, on behalf of the Hungarian Export Credit Insurance Plc.