The Verite Research proposed Governance-Linked Bond (GLB) had figured in the recent London talks between the Government of Sri Lanka and external commercial creditors.
GLB is structured based on 2 Key Performance Indicators (KPIs) – Tax revenue to GDP ratio and selected reforms envisaged under the IMF program.
Verite’s Executive Director Nishan de Mel said yesterday the Governance-Linked Bonds was introduced first to the SL Government in April/May 2023 with an immediate positive response at the highest levels; and then to Bond-holders that expressed huge interest, since Sept. 2023.
The proposal under discussion can be better understood by reading the short non-technical document at this link: https://veriteresearch.org/publication/governance-linked-bond/
For an even simpler motivation of this approach, read this op-ed by Nishan de Mel published in the Daily Mirror last December: https://dailymirror.lk/opinion/For-Sri-Lanka–A-Governance-Linked-Bond-Might-Just-Be-The-Ticket/172-273633
The full technical paper is being presented at a global debt conference (DebtCon7) in Paris on the 30th of May, by Nishan de Mel and Raj Rajakulendran from @VeriteResearch
from: https://x.com/ncdemel/status/1780191359070339287?s=46
