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 1^st May to 31^st 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.

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 1^st May to 31^st 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

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 1^st May to 31^st 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.

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.

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

The Government of the Independent State of Samoa 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 Independent State of Samoa 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 Independent State of Samoa 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 Independent State of Samoa’s debt are the governments of Japan.

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