Bad loans usually rise after a credit bubble burst and a period of low interest rates end.
IMF Executive Board Concludes Ex-Post Assessment of Exceptional Access Under the 2009 Stand-By Arrangement and First Post-Program Monitoring Discussion with Sri Lanka
On November 27, 2013, the Executive Board of the International Monetary Fund (IMF) concluded the Ex-Post Evaluation of Exceptional Access under the 2009 Stand-By Arrangement (SBA), and the first Post-Program discussion with Sri Lanka.1
Sri Lanka’s need for IMF support under the 2009 SBA was triggered by the onset of the global financial crisis, and set against a backdrop of rising fiscal and external vulnerabilities. These circumstances also coincided with the end of its decades-long conflict, necessitating international support in order to avert a potential balance of payments crisis. In July 2009, a 20-mon