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Endorsement with the G20 of a common framework to coordinated debt treatments

 

Paris Club members acknowledge the COVID-19 health and economic crisis is significantly increasing the debt vulnerabilities of the poorest and most vulnerable countries. In such a context, Paris Club members consider a multilateral approach, consistent with its principles and coordinated with non-Paris Club creditors, to be critical in providing appropriate debt treatment beyond the Debt Service Suspension Initiative (DSSI) on a case-by-case basis.

For that purpose, Paris Club members have agreed a “Common Framework for Debt Treatments beyond the DSSI” and welcome the decision taken today (13 November 2020)  by the extraordinary G20 Finance Ministers and Central Bank Governors’ Meeting to endorse this Common Framework (Annex). It is a major achievement in the international debt architecture to strengthen coordination among official bilateral creditors. 

Paris Club members will coordinate closely with non-Paris Club G20 members and other stakeholders to ensure the successful implementation of this Common Framework.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club are the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

English

News Type: 

Press release

Slideshow image: 

Attachments: 

PDF icon 20201113_pr_common_framework.pdf
PDF icon annex_common_framework_for_debt_treatments_beyond_the_dssi.pdf

Event date: 

Friday, 13 November, 2020 - 18:15

Tanzania benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the United Republic of Tanzania is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the United Republic of Tanzania a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the United Republic of Tanzania 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 United Republic of Tanzania 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 the United Republic of Tanzania 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the United Republic of Tanzania’s debt are the governments of Austria, Belgium, France, Japan, the Republic of Korea and the Russian Federation.

Observers to the agreement are representatives of the governments of Australia, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

 

Credit AdobeStock©Antonio

English

News Type: 

Press release

Slideshow image: 

Tanzania benefits from the debt service suspension initiative

Attachments: 

PDF icon 20201023_pr_dssi_tanzania.pdf

Event date: 

Friday, 23 October, 2020 - 15:15

Extension of DSSI and common framework for debt treatments

 

Given the significant financing needs that the eligible countries to the Debt Service Suspension Initiative are expected to face in 2021, Paris Club members and the G20 agreed to extend the DSSI by 6 months, and to examine by the time of the 2021 IMF/WBG Spring Meetings if the economic and financial situation requires to extend further the DSSI by another 6 months, with targeted complements to the April 2020 DSSI Term Sheet as set forth in the attached addendum (cf. attachment).

Paris Club members underline that all official bilateral creditors should implement this initiative fully and in a transparent manner. They call on private creditors to participate in the initiative on comparable terms when requested by eligible countries. While protecting their current ratings and low cost of funding, Multilateral Development Banks (MDBs) are encouraged to go further on their collective efforts in supporting the DSSI, including through providing net-positive flows to DSSI-eligible countries during the suspension period, including the extension period.

Furthermore, Paris Club members acknowledge that the COVID-19 health and economic crisis is increasing significantly the debt vulnerabilities of the poorest and most vulnerable countries. In such a context, Paris Club members consider that a multilateral approach, consistent with its principles and coordinated with non-Paris Club creditors, is critical to provide appropriate debt treatment beyond the DSSI on a case-by-case basis. For that purpose, Paris Club creditors agreed on a “Common Framework for Debt Treatments beyond the DSSI”, which is also agreed in principle by the G20. Paris Club members look forward to the endorsement of the Common Framework by G20 members, subject to their domestic approval procedures, ahead of the Riyadh G20 Leaders’ Summit in November 2020, in an extraordinary G20 Finance Ministers and Central Bank Governors meeting where G20 members will publish the Common Framework and also discuss outstanding issues related to the DSSI.

Paris Club creditors and the G20 will continue to closely coordinate its ongoing implementation to provide maximum support to DSSI-beneficiary countries.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The 22 members of the Paris Club are: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, Korea, the Netherlands, Norway, Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

 

English

News Type: 

Press release

Slideshow image: 

Attachments: 

PDF icon addendum_to_the_april_2020_term_sheet.pdf
PDF icon 20201014_pr_extension_dssi_cf.pdf
File dssi_template_letter.docx

Event date: 

Wednesday, 14 October, 2020 - 19:45

Madagascar benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Madagascar is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Madagascar a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the Republic of Madagascar 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 Republic of Madagascar 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 the Republic of Madagascar 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the Republic of Madagascar’s debt are the governments of France, Japan, the Republic of Korea, the Russian Federation and Spain.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom and the United States of America.

English

News Type: 

Press release

Slideshow image: 

Madagascar bénéficie de l’initiative de suspension du service de la dette

Attachments: 

PDF icon 20201012_pr_dssi_madagascar.pdf

Event date: 

Monday, 12 October, 2020 - 16:30

Yemen benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Yemen is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Yemen a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the Republic of Yemen 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 Republic of Yemen 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 the Republic of Yemen 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the Republic of Yemen’s debt are the governments of Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands, the Republic of Korea, the Russian Federation, Spain, the United Kingdom and the United States of America.

Observers to the agreement are representatives of the governments of Australia, Austria, Brazil, Canada, Finland, Ireland, Israel, Norway, Sweden and Switzerland.

English

News Type: 

Press release

Slideshow image: 

Yemen benefits from the debt service suspension initiative

Attachments: 

PDF icon 20201007_pr_dssi_yemen.pdf

Event date: 

Wednesday, 7 October, 2020 - 18:00

Mozambique benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Mozambique is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Mozambique a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the Republic of Mozambique 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 Republic of Mozambique 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 the Republic of Mozambique 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the Republic of Mozambique’s debt are the governments of Belgium, Brazil, France, Japan, the Republic of Korea, the Russian Federation and Spain.

Observers to the agreement are representatives of the governments of Australia, Austria, Canada, Finland, Denmark, Germany, Ireland, Israel, Italy, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom and the United States of America.

 

Credit AdobeStock©eunikas

English

News Type: 

Press release

Slideshow image: 

Mozambique benefits from the debt service suspension initiative

Attachments: 

PDF icon 20200929._pr_dssi_mozambique.pdf

Event date: 

Tuesday, 29 September, 2020 - 17:45

The Maldives benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Maldives is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Maldives a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the Republic of Maldives 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 Republic of Maldives 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 the Republic of Maldives 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the Republic of Maldives’ debt are the governments of Belgium, France, Japan and the United States of America.

Observers to the agreement are representatives of the governments of Australia, Austria, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, the Netherlands, Norway, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland and the United Kingdom.

English

News Type: 

Press release

Slideshow image: 

The Maldives benefits from the debt service suspension initiative

Attachments: 

PDF icon 20200914_pr_dssi_maldives.pdf

Event date: 

Monday, 14 September, 2020 - 11:45

Lesotho benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that Lesotho is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to Lesotho a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of Lesotho 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 Lesotho 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 Lesotho 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The member of the Paris Club which participates in the reorganization of Lesotho’s debt is the government of France.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Spain, Sweden, Switzerland, the Republic of Korea, the Russian Federation, the United Kingdom and the United States of America.

English

News Type: 

Press release

Slideshow image: 

Lesotho benefits from the debt service suspension initiative

Attachments: 

PDF icon 20200909_pr_dssi_lesotho.pdf

Event date: 

Wednesday, 9 September, 2020 - 19:00

Tajikistan benefits from the debt service suspension initiative

 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Tajikistan is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Tajikistan a time-bound suspension of debt service due from 1st May to 31st December 2020.

The Government of the Republic of Tajikistan 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 Republic of Tajikistan 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 the Republic of Tajikistan 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.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club which participate in the reorganization of the Republic of Tajikistan’s debt are the governments of France, Germany, the Russian Federation and the United States of America.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, Ireland, Israel, Italy, Japan, the Netherlands, Norway, the Republic of Korea, Spain, Sweden, Switzerland and the United Kingdom.

 

Credit AdobeStock©Philip Richter

English

News Type: 

Press release

Slideshow image: 

In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Tajikistan is eligible to benefit from the initiative. Therefore, the representatives of the Paris C

Attachments: 

PDF icon 2020903_pr_dssi_tajikistan.pdf

Event date: 

Thursday, 3 September, 2020 - 16:00

Progress on the implementation of the debt service suspension initiative

 

As of today, 39 countries have requested to benefit from the Paris Club’s implementation of Debt Service Suspension Initiative (DSSI).

Of these, 28 have already signed a Memorandum of Understanding with the Paris Club to implement the DSSI. These countries are: Angola, Burkina Faso, Cabo Verde, Cameroon, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Djibouti, Dominica, Ethiopia, Grenada, Guinea, Ivory Coast, Kyrgyz Republic, Mali, Mauritania, Myanmar, Nepal, Niger, Pakistan, Papua New Guinea, Samoa, São Tomé and Príncipe, Senegal, Sierra Leone, Togo and Zambia.

For these 28 countries, the maturities - initially due in 2020 and deferred thanks to the DSSI - amount to approximatively USD 1.8 billion to date. The total amount deferred - also including the deferment of arrears that pre-existed the implementation of the DSSI - reaches USD 2.1 billion. Among the 28 countries, for Cabo Verde and São Tomé and Príncipe, Portugal, which is not member of the Paris Club, signed jointly with the Paris Club creditors the Memorandums of Understanding implementing the DSSI.

“The Paris Club confirms its key role in the international debt agenda and its capacity to coordinate with non-Paris Club G20 creditors. It has been instrumental in designing the debt service suspension initiative (DSSI) in April, and has also shown leadership in its implementation phase. It is now finalizing the deferral of the debt service due to all Paris Club member creditors. The Paris Club is fully committed to continuing to contribute actively to the DSSI and post-DSSI discussion and implementation”, says Odile Renaud-Basso, Chair of the Paris Club.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 members and other stakeholders in the implementation of the DSSI, so as to provide maximum support to beneficiary countries. Paris Club creditors expect and call on all bilateral creditors to fully implement the initiative on comparable terms and in a transparent manner.

Later this fall, Paris Club Creditors will examine a possible extension of the suspension period, taking into account a report on the liquidity needs of eligible countries to be provided by the World Bank and IMF.

 

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The 22 members of the Paris Club are: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, Korea, the Netherlands, Norway, Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

 

English

News Type: 

Press release

Slideshow image: 

Attachments: 

PDF icon 20200901_pr_dssi_progress.pdf

Event date: 

Tuesday, 1 September, 2020 - 12:30

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