Debt Service Suspension Initiative: Pakistan can save $2.705 billion owed to creditors: WB

ISLAMABAD: Pakistan could save $2.705 billion owed to creditors under the Debt Service Suspension Initiative (DSSI), according to estimates published by the World Bank (WB).

According to the Bank's data the world's poorest countries could save around $11.54 billion owed to sovereign and other creditors through their participation in the debt-relief programme.

The savings under the Covid-19-linked DSSI will be short-term, since the initiative only provides for suspension of debt payments through the end of the year. It postpones those payments until a later date but does not cancel them outright. The DSSI is backed by the G-20, the World Bank, the IMF and the Paris Club of sovereign lenders.

The World Bank Group has created a virtual one-stop for the latest information about DSSI. It highlights the potential savings for each eligible country-both in dollar terms and as a percentage of GDP.

David Malpass, President of the World Bank Group stated, "I believe it is important to have detailed and timely public disclosure of debt service payments that may be deferred."

Copyright Business Recorder, 2020