Paris Club agrees to suspend Pakistan debt service payments
- This initiative will also contribute to help Pakistan to improve debt transparency and debt management.
The Paris Club of creditor nations on Wednesday announced that they have agreed to suspend debt service payments from Pakistan as part of a G20 debt relief deal.
“In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Islamic Republic of Pakistan is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Islamic Republic of Pakistan a time-bound suspension of debt service due from 1st May to 31st December 2020,” the group said in a statement.
The group added that the Pakistani government is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis. “The Government of the Islamic Republic of Pakistan is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet.”
This initiative will also contribute to help Pakistan to improve debt transparency and debt management.
Paris Club creditors will continue to closely coordinate with other stakeholders in the implementation phase of this initiative, in particular when considering a possible extension of the suspension period.
The latest agreements bring to 12 the number of countries to receive debt relief under the deal with a total of $1.1 billion in debt deferred as a result, the Paris Club said, adding 30 countries had requested to benefit.
Comments
Comments are closed.