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Venezuela is preparing for a massive debt restructuring, aiming to resolve $154 billion in defaulted bonds, loans, and legal judgments owed to creditors worldwide. The hiring of Rothschild & Co. as a financial adviser by President Nicolas Maduro's government signals a commitment to re-entering global financial markets. However, before negotiations with creditors can begin, Venezuela must navigate sanctions, regain recognition from the US, and determine the extent of its debt obligations. While the complexity of the restructuring is unprecedented, some experts believe that a path may emerge after the upcoming presidential election. [Extracted from the article]

Ecuador's emerging market bond rally is dependent on the popularity of President Daniel Noboa, who has implemented measures to combat gang violence, increase taxes, and negotiate with the International Monetary Fund. The upcoming referendum on security measures proposed by Noboa will determine his popularity and the future performance of Ecuador's sovereign debt. Despite an energy crisis and allegations of sabotage, Noboa is in a stronger position than his predecessor, Guillermo Lasso, with a higher approval rating. If the referendum results are favorable, Ecuador's bonds are expected to continue their strong performance. [Extracted from the article]

El Salvador has bought back $487 million of its hard-currency bonds after issuing debt in the global capital market for the first time in almost four years. The government accepted all tenders for notes due in 2025, as well as a portion of the offered bonds maturing in 2027 and 2029. The buyback was slightly better than expected, according to an economist, and the newly-issued 2030 notes saw a rise in value. While the transaction eases the strain on El Salvador next year, it also sends a negative signal by giving the government 18 months to reach a deal with the International Monetary Fund before facing higher interest rates on the securities. [Extracted from the article]

Emerging-market currencies have experienced a decline for the third consecutive session, coming close to reaching a low for the year. This drop is attributed to rising geopolitical tensions and a shift in the US interest rate outlook, leading to increased risk aversion among investors. The Hungarian forint and Chile's peso were the most affected currencies. Additionally, the Mexican peso saw a drop in value and increased volatility, undermining its appeal as a carry-trade currency. Bank of America analysts have expressed caution regarding emerging-market bonds and currencies, citing concerns about rates and crowded trades. [Extracted from the article]

Panama is facing political and economic challenges following violent protests that led to the closure of a controversial copper mine. The closure of the mine has become a sensitive topic in the lead-up to the presidential election, with none of the top candidates willing to discuss it. The closure of the mine has also affected Panama's economy, leading to a decline in its credit rating and making its bonds unattractive to investors. The mine accounted for 5% of the country's GDP, and its closure is expected to significantly impact economic growth. The next government will face the task of addressing fiscal problems, pension reforms, and finding a solution to the mine issue. [Extracted from the article]

Emerging-market currencies and stocks have declined due to concerns over faster-than-expected US inflation. The release of US Producer Price Index (PPI) data has caused traders to reassess their outlook for US interest rates, leading to a delay in the Federal Reserve's plans to lower borrowing costs. Geopolitical tensions in the Middle East have also contributed to a decrease in investor risk appetite. Emerging economies may need to adjust their easing cycles in response to the Fed's outlook in order to prevent their currencies from weakening further. [Extracted from the article]

Emerging-market assets experienced a slight recovery after US inflation figures were lower than expected, easing concerns sparked by previous CPI data. The MSCI index for developing world currencies and emerging stocks both saw losses reduced. However, individual currencies varied, with the Hungarian forint performing well and the South Korean won underperforming. The Mexican peso, Polish zloty, and Colombian peso all gained. The article also mentions shifts in bond yields and rate bets in Hungary and South Africa respectively. [Extracted from the article]

Emerging-market currencies and stocks experienced declines after higher-than-expected US inflation numbers reduced the likelihood of the Federal Reserve cutting interest rates. The MSCI gauge of developing currencies fell, while stocks initially erased gains before closing slightly higher. Analysts suggest that the Fed's policy path may lead to a reassessment of emerging-market currencies and bonds, and that global growth and lack of inflation in emerging markets are unlikely to cause a rally in the near-term. Several currencies, including the South African rand, Brazilian real, and Chilean peso, experienced losses, with the rand being particularly affected by a global selloff and a decrease in support for the ruling African National Congress. [Extracted from the article]

El Salvador is offering to buy back some of its dollar bonds from investors as risk premiums on the securities decrease. The country is specifically targeting notes due in 2025, 2027, and 2029. This move is seen as a positive indicator of President Nayib Bukele's government's stability and is expected to have a positive impact on bond prices. However, some money managers are growing cautious due to deteriorating fiscal accounts and the delayed loan from the International Monetary Fund. The offer expires on April 15 and is being managed by BofA Securities, Inc. [Extracted from the article]

According to the most accurate forecaster of the Mexican peso, the currency's world-beating rally is expected to slow down as Mexico's central bank begins to cut interest rates. The peso has seen a nearly 10% increase in the past year, outperforming other major currencies. However, this has led to an overvaluation of the peso, and its appeal may decrease as interest rate differentials between the US and Mexico narrow. Despite this, the peso is not expected to depreciate against the dollar, as record remittances from the US and strong economic growth will likely support it. The forecaster also predicts a US soft-landing scenario, which would create a favorable risk environment for emerging markets. The upcoming Mexican and US presidential elections could increase volatility, with the latter having a greater impact. [Extracted from the article]

Fitch Ratings has downgraded Panama's credit rating to junk status due to concerns over the closure of a major copper mine and its impact on the country's fiscal situation and growth prospects. The downgrade, which comes ahead of the country's presidential elections in May, has surprised investors and led to a slump in bonds. Moody's Ratings is also expected to downgrade Panama later this year. The downgrade could trigger forced selling by investment-grade dedicated funds, potentially amounting to $4.5 billion. [Extracted from the article]

Zambia is working to finalize a debt restructuring deal that would provide the country with the necessary "headroom" to attract investment and stimulate economic growth. Negotiations to revamp foreign debt have taken longer than expected, and the government is now waiting for creditors to complete the deal. After the debt restructuring is concluded, President Hakainde Hichilema's administration plans to focus on attracting investment to sectors such as cobalt mining for electric-vehicle batteries. The government is seeking to attract foreign companies and investors to set up manufacturing plants in Zambia. [Extracted from the article]

Wall Street and New York lawmakers are at odds over a proposed bill called the Sovereign Debt Stability Act, which aims to reform the process of restructuring defaulted government debt. The bill would increase oversight on debt restructuring and potentially limit the recoveries of private bondholders. Lawmakers argue that the bill would help defaulted nations recover more quickly, while trade organizations warn of unintended consequences and potential risks for investors. The bill is currently being considered in Albany and proponents hope to pass it before the end of the legislative session in June. [Extracted from the article]

Wall Street industry groups are expressing concerns about a proposed bill in New York that aims to overhaul the process of restructuring sovereign debt. The bill, called the Sovereign Debt Stability Act, would increase oversight on how defaulted government debt is renegotiated with creditors. However, trade organizations such as the Institute of International Finance and Credit Roundtable are urging lawmakers to pause consideration of the bill, citing potential negative consequences for developing countries already struggling with high interest rates and tight global financial conditions. On the other hand, New York state lawmakers argue that the bill is intended to help defaulted nations recover more quickly from their debt crises. If passed, the new rules could impact nearly half of all emerging-market government bonds, totaling around $800 billion, that are governed by New York law. [Extracted from the article]

The risk of government defaults in emerging markets is decreasing, leading to a rally in bonds that were previously at risk of collapse. Factors such as increased investment in Egypt, a new government in Pakistan, and political reform in Argentina have contributed to this trend. Only 10 countries are currently showing signs of distress in the bond market, compared to 20 in the previous year. The rally in junk bonds is driven by free-market reforms and progress in negotiations with the International Monetary Fund in vulnerable economies. The narrowing spread between speculative-grade sovereign bonds and US Treasuries indicates a decline in risk premiums. Sub-Saharan Africa has seen the most significant decline in risk premiums. Countries such as Argentina, Egypt, Ecuador, and Sri Lanka, which were previously unattractive to investors, are now leading in global gains. Egypt's recent deal with the IMF has boosted investor confidence, and its sovereign bonds have returned 24% this year. Ecuador has also seen positive changes, and talks with the IMF could unlock new cash. Even Argentina, a perennial defaulter, is gaining fans as it pursues talks with the IMF and negotiates an economic overhaul. Countries in default are making progress in debt restructuring talks, further strengthening high-yield sovereign bonds. Investors are closely monitoring money-market bets for potential rate cuts by the Federal Reserve and commentary from monetary authorities in rich nations. Overall, there is significant opportunity in emerging market sovereign and quasi-sovereign bonds, and the risk is lower than what the market has priced. [Extracted from the article]

Moody's Ratings has raised Egypt's credit outlook to positive due to the nation's ability to secure funding from the International Monetary Fund and bilateral lenders. The credit-rating company also affirmed Egypt's Caa1 rating. Analyst Elisa Parisi-Capone stated that the positive outlook reflects official and bilateral support, as well as policy steps taken to support macroeconomic rebalancing. Additionally, large investments from the United Arab Emirates are expected to cover Egypt's external financing gap until June 2026, reducing downside risks. Egypt's decision to devalue the currency and raise interest rates will also help maintain an IMF program. [Extracted from the article]

New York state lawmakers are proposing new legislation to reform the process of resolving sovereign debt crises. The bill aims to increase oversight on debt restructuring and potentially limit the amount investors can recover during debt restructuring. If passed, the legislation could impact nearly half of all emerging-market government bonds governed by New York law. The proposed law is a response to the need for faster and smoother agreements between creditors and defaulted countries. However, Wall Street investors have expressed concerns about the potential impact on borrowing costs and the sovereign bond market. [Extracted from the article]

New York state lawmakers are proposing new legislation to reform the process of resolving sovereign debt crises. The bill, sponsored by Senator Gustavo Rivera, aims to increase oversight on debt restructuring and potentially limit investor recoupment during debt restructuring. If passed, the legislation could impact nearly half of all emerging-market government bonds governed by New York law. The bill is a response to the need for faster and smoother agreements between creditors and defaulted countries, but it has faced opposition from Wall Street investors who argue it could raise borrowing costs for emerging-market governments. [Extracted from the article]

SoftBank Group Corp. expects to increase its investments in Latin American startups in 2024 as valuations become more realistic. The company's managing partner of the SoftBank Latin America Funds, Juan Franck, stated that there is a healthy pipeline of opportunities, but they will be cautious about valuations. SoftBank made a significant impact in the region starting in 2019 with a $5 billion fund, and it later committed an additional $3 billion. Despite capital markets being mostly closed for exits like initial public offerings, SoftBank remains focused on managing its current portfolio. [Extracted from the article]

Bolivia's socialist government is working to repair its relationship with business leaders in order to address a looming dollar shortage and prevent an economic crash. Government officials recently met with representatives from various sectors, including finance, manufacturing, construction, and pharmaceuticals, and agreed to their requests for less burdensome regulations for exporters. The government's 10-point plan also includes measures to address fuel shortages and provide tax breaks for electric vehicles. The socialist MAS party, which has governed Bolivia for most of the past two decades, has historically had a strained relationship with private business, but the dollar shortage has brought the two sides closer. The country narrowly avoided a financial crisis last year by allowing the central bank to sell some of its gold reserves, but it now has limited resources to defend its currency peg. This has led to a black market for dollars and shortages of basic goods. The government has also agreed to issue bonds in dollars, although it faces challenges in accessing global markets due to its distressed credit rating. Bolivia's bonds were recently downgraded further into junk status by Fitch Ratings, which cited falling international reserves as a threat to the country's ability to service its debt. The nation's economy, which was previously driven by natural gas exports, has been in decline due to a lack of investment in exploration and a lack of new sources of growth. [Extracted from the article]

Venture capital firms in Latin America are preparing to invest nearly $4 billion in startups after a challenging year. The region's central banks are cutting interest rates, prompting investors to seek alternative ways to invest their money. In January, Latin American startups raised $315.5 million in 63 investment rounds, the highest amount of activity in three months. However, investors are being more selective with their investments, and while the region saw a record $15 billion in venture spending in 2021, last year's investments totaled only $4 billion. Despite this, there is still significant capital waiting to be deployed in the region. [Extracted from the article]

Pacific Investment Management Co. (Pimco) is looking for an opportunity to increase its investments in the Latin American market, particularly in Mexican assets, ahead of the upcoming high-stakes elections in the US and Mexico. Pimco sees the price swings associated with the elections as a chance to buy Mexican assets, including the peso, which they view as attractive. Despite the expected volatility, Pimco believes that the fundamentals of the Mexican economy are strong and will outweigh any short-term fluctuations. Pimco's positive outlook on the peso aligns with other Wall Street firms, although some asset managers have recently reduced their bullish bets on the currency. [Extracted from the article]

The Turkish lira has weakened after the resignation of central bank governor Hafize Gaye Erkan. While her resignation was not unexpected due to allegations of her family's involvement in the central bank's affairs, it has put Turkey's commitment to orthodox economic policies to the test. Erkan was appointed in June to lead an investor-friendly overhaul of Turkey's economic policies, including raising interest rates and attracting foreign investment. Initial investor reaction suggests they expect continuity, but with some volatility. There may be rifts between President Erdogan and the central bank governor, and a new governor is expected to be appointed. [Extracted from the article]

First Quantum Minerals Ltd.'s dollar bonds have rebounded after incurring losses due to a dispute with Panama over the company's copper mine. The bonds have climbed 15 cents on the dollar since hitting a low in November, as the company plans to cut costs and raise cash. The closure of the mine has cast uncertainty over First Quantum's finances, but the company's efforts to free up cash and the upcoming presidential election have boosted investor confidence. First Quantum is considering various capital-market options to offset the mine closure, including extending bank loan facilities and selling stakes in larger mining assets. Barrick Gold Corp. has expressed confidence in resolving the situation in Panama, which could further benefit First Quantum's bonds. The upcoming presidential election could also lead to a policy change and a renegotiation of the mining contract. [Extracted from the article]

Investors are increasingly optimistic about emerging-market debt as they anticipate the Federal Reserve's potential interest rate cuts. This optimism is driving a surge in domestic bond markets, particularly in Latin America, where early and aggressive monetary policy has led to a strong rally in local-currency debt. Money managers, including Grantham Mayo Van Otterloo & Co., are calling this a "once-in-a-generation" opportunity for local bonds. A potential pivot by the Fed, along with a weaker dollar, could encourage central banks in emerging markets to ease and result in a unique investment opportunity. [Extracted from the article]

Moody's Investors Service has downgraded Egypt's credit outlook from stable to negative, indicating the country's worsening economic situation. Despite talks with the International Monetary Fund (IMF) to increase a $3 billion rescue program, Moody's warns that it may not be sufficient. Egypt is currently facing its worst economic crisis in decades, exacerbated by the ongoing conflict between Israel and Hamas. The country is experiencing a dire shortage of hard currency, with the pound weakening on the black market. Moody's estimates that interest payments will absorb two-thirds of Egypt's revenue by the end of the fiscal year. The rating company also highlights the potential for a rating downgrade if concerns arise about the government's ability to service its debt or boost foreign reserves. However, an upgrade could occur if the government attracts inflows of foreign exchange. [Extracted from the article]

Moody's Investors Service has downgraded Egypt's credit outlook to negative, while maintaining its Caa1 rating. The downgrade is due to increasing risks that Egypt's credit will continue to weaken, given its weak debt metrics and exposure to foreign exchange and interest rate risks. Despite ongoing fiscal consolidation efforts and official sector support, there are concerns about the nation's credit profile amid difficult macroeconomic and exchange rate rebalancing. Egypt is currently in talks with the International Monetary Fund to potentially double its $3 billion rescue program. A rating downgrade could occur if there are concerns about the government's ability to service its local currency debt or boost foreign reserves, while a rating upgrade could happen if the government generates foreign exchange inflows. [Extracted from the article]

Global investors are increasingly investing in high-yield government bonds in emerging markets such as Argentina, Turkey, and Zambia. These bonds have seen a significant rally due to promises of reform, restructuring deals, and reduced default risks. The strategy of investing in emerging-market junk bonds yielded returns of 18.5% last year, nearly triple the returns of investment-grade sovereign debt. Wall Street firms like TCW, Neuberger Berman Group, M&G Investments, and PGIM Fixed Income are optimistic about the momentum behind riskier developing-market debt in 2024, with expectations of lower interest rates and a potential soft landing in the global economy. However, investing in lower-rated debt comes with uncertainty, and the outlook for central bank pivots remains a question. Despite this, there is still a significant opportunity for high-yield bonds in the sovereign space. Argentina and Turkey, in particular, are seen as turnaround stories, with Argentina's new administration promising economic reforms and Turkey's President Erdogan implementing orthodox policy making. Other countries like Angola, Nigeria, Kenya, and El Salvador are also expected to tap into international bond markets this year. The article concludes by mentioning ongoing debt negotiations in Zambia and Ghana, which could present opportunities depending on the outcome of restructuring talks. [Extracted from the article]

President Daniel Noboa of Ecuador is urging citizens to support the fight against violent gangs in the country. He has submitted a bill to the National Assembly to increase the value-added tax from 12% to 15% as part of his efforts to address the budget deficit and implement reforms. The president also plans to propose temporary labor contracts and international arbitration in a referendum, which has raised concerns among left-wing parties and Indigenous organizations. The government is also considering deep cuts to the bureaucracy and canceling temporary government labor contracts to demonstrate its commitment to fiscal responsibility. The proposed tax hike is expected to help secure a loan from the International Monetary Fund. However, the bill is facing opposition from political parties in congress. Despite the recent outbreak of violence, much of Ecuador has returned to a tense calm, with stores and offices reopening. Schools, however, remain closed due to the ongoing crisis. The government is conducting large-scale raids to arrest suspected gang members, and standoffs at prisons where inmates are holding staff hostage continue. The cautious approach taken by the government is aimed at minimizing disruptions to the economy. [Extracted from the article]

Moody's Investors Service has raised Nigeria's credit outlook to positive due to the government's efforts to improve its fiscal position and foreign reserves. The devaluation of the naira and removal of the oil subsidy were cited as positive actions. However, Nigeria's rating remains at Caa1, seven levels into junk, due to weak fiscal and external positions. The reforms may not be enough to improve the country's credit profile. Nigeria is expected to spend significantly more on debt servicing than on building schools or hospitals, and over 40% of the population lives in extreme poverty. [Extracted from the article]

According to UBS Asset Management, bonds from the riskiest emerging markets are expected to perform well in 2024 as governments implement necessary reforms to access emergency bailout financing. The International Monetary Fund and World Bank are providing financing opportunities for vulnerable economies like Pakistan. Defaults in emerging markets have already peaked, and troubled nations have started making structural changes for growth and stability. The $505 million emerging market hard-currency debt fund managed by UBS has returned 5.1% in the past month, outperforming most peers. High-yielding countries such as Pakistan, Argentina, and Sri Lanka have seen the best-performing bonds this year. Junk-rated government dollar bonds still have room for gains in 2024, with Argentina being one of UBS's top allocations. [Extracted from the article]

Emerging-market stocks, particularly those in China, have experienced a significant decline, resulting in Chinese companies trading at their largest discount to developing-nation peers in 25 years. This divergence highlights the diminishing influence of China on developing-nation assets due to factors such as a slowdown in growth, debt overhang, and a property crisis. In contrast, other developing nations have seen a rally in their stocks, supported by a strong US economy and expectations of interest-rate cuts by the Federal Reserve. The MSCI index on emerging-market stocks dropped 0.8% on Tuesday, while a similar gauge on developing currencies fell 0.2%. [Extracted from the article]

Colombia's dollar bonds have rebounded in 2023 after reaching their lowest levels since the 2008 global financial crisis. President Gustavo Petro's radical proposals to overhaul the nation's economic model were blocked by lawmakers, leading to a sense of relief among bondholders. The rally is expected to continue into 2024, surpassing similarly-rated nations like Brazil, due to a smaller-than-expected fiscal deficit, a narrowing current account gap, and Petro's falling popularity. The risk premium investors demand to hold Colombian debt has decreased, and many expect the spread over US Treasuries to narrow. However, some remain skeptical about the government's moderation and fear increased tax revenue may be used for subsidies and handouts. Despite this, Morgan Stanley has chosen Colombia's dollar bonds as one of its top high-yield choices for next year. [Extracted from the article]

Mark Mobius, a veteran emerging markets investor, believes that President-elect Javier Milei's plan to dollarize the Argentine economy would greatly benefit the nation. Mobius stated that dollarization would lead to a significant decrease in inflation and expressed support for getting rid of the central bank. He also mentioned that the return of confidence could bring back offshore dollars into the country. Additionally, Mobius discussed the potential benefits of a combined currency between Brazil and Argentina and expressed a preference for investing in Taiwan due to its leadership in high-value semiconductors. [Extracted from the article]

Emerging-market borrowers have taken advantage of a temporary respite in global bond markets, selling approximately $20 billion in dollar notes in just a few days. This surge in activity is attributed to the possibility of the Federal Reserve winding up its aggressive interest rate hikes and cooling jobs growth in the US. The improved market conditions have prompted over 30 countries and companies to issue hard-currency bonds, with Colombia and Turkey leading the way. The demand for longer-dated bonds has also increased, signaling investor confidence in the Fed's interest rate trajectory. [Extracted from the article]

Emerging-market borrowers have taken advantage of a temporary respite in global bond markets, selling approximately $20 billion in dollar notes in just a few days. This surge in activity is attributed to signals that the Federal Reserve may be nearing the end of its aggressive interest rate hikes, as well as cooling jobs growth in the US. The improved market conditions have allowed countries like Colombia and Indonesia, as well as developing-nation companies, to lock in lower borrowing costs. This wave of issuance may be just the beginning, with more deals still in the pipeline. [Extracted from the article]

Rajiv Jain, the biggest minority shareholder in Petrobras, has shown confidence in the state-owned Brazilian oil company by investing in it when other investors were selling off their shares. GQG Partners Inc., the investment firm Jain helped establish, owns about 6% of the company and has benefited from a 59% increase in the stock since mid-December. The future of the stock will depend on Petrobras' upcoming five-year strategic plan, which will determine if the rally continues. Despite the risks, Jain believes Petrobras is still the cheapest large cap stock in the world. [Extracted from the article]

Emerging markets jolted awake after weeks of doldrums, during which borrowers have grappled with rising interest rates and added uncertainties surrounding the Middle East conflict. (Bloomberg) -- Emerging-market borrowers crowded into the bond market Monday in the busiest day for sales of such debt this year, as a range of issuers jumped at the opportunity to lock in lower yields after a rally in benchmark US Treasuries. [Extracted from the article]

Read more: Commodities Giant Latin America Is Poised for a Green Revolution Gustavo Petro won Colombia's 2022 election on a pledge to halt new oil exploration contracts, while Mexico nationalized its lithium deposits and froze new hydrocarbon licenses for private investors. "We are talking about the biggest private investment ever in Panama, and almost at the level of the Panama canal expansion. (Bloomberg) -- Panama's reputation as an investor-friendly haven is at risk from attempts to shut a giant Canadian-owned copper mine, the latest case of a commodities project triggering social unrest in Latin America. [Extracted from the article]

(Bloomberg) -- Argentina's dollar bonds are among the worst in emerging markets as investors shunned the securities as the country heads to a presidential runoff between the nation's economy minister and a radical libertarian. Many of the South American nation's sovereign bonds weakened on Monday by about two cents on the dollar, after Economy Minister Sergio Massa unexpectedly took the lead in Sunday's election. [Extracted from the article]

(Bloomberg) -- Elections are shining a spotlight on struggling emerging markets, with the prospect of fresh leadership unlocking opportunities in the asset class. Brazil's consumer price inflation data will probably show inflation ticking down, thanks to slowing pressures from transportation costs and lower food prices, according to economists surveyed by Bloomberg. [Extracted from the article]

Brazil's consumer price inflation data will probably show inflation ticking down, thanks to slowing pressures from transportation costs and lower food prices, according to economists surveyed by Bloomberg. (Bloomberg) -- Elections are shining a spotlight on struggling emerging markets, with the prospect of fresh leadership unlocking opportunities in the asset class. [Extracted from the article]

Sri Lanka's progress on its debt restructuring is also key to the IMF financing, with the nation completing an exchange of local debt last month. (Bloomberg) -- Sri Lanka secured an initial funding approval from the International Monetary Fund, paving the way for the South Asian country to receive the next loan tranche from a $3 billion bailout program. [Extracted from the article]

In April, Moody's lowered the outlook on Israel's rating to stable from positive, citing a "deterioration of Israel's governance." (Bloomberg) -- Israel's debt rating was put on review for downgrade at Moody's Investors Service as the violent conflict with Hamas escalates. [Extracted from the article]

The nation and IMF staff reached a deal on economic policies to conclude the first review of its 48-month funding program, the Washington-based lender said in an Oct. 19 statement. (Bloomberg) -- Sri Lanka secured a staff-level agreement with the International Monetary Fund, paving the way for the nation to receive the next tranche of funding from its $3 billion bailout program. [Extracted from the article]