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

The Government of Papua New Guinea 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 Papua New Guinea 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 Papua New Guinea 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 Papua New Guinea’s debt are the governments of Australia, Germany and Japan.

Observers to the agreement are representatives of the governments of Austria, Belgium, Brazil, Canada, Denmark, Finland, France, 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.

Credit AdobeStock©Bart

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

The Government of the Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe’s debt are the governments of Belgium and Brazil. Portugal participates also in the reorganization of the debt of the borrower country.

Observers to the agreement are representatives of the governments of Australia, Austria, 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.

Credit AdobeStock©silvapinto

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 Zambia is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Zambia a time-bound suspension of debt service due from 1^st May to 31^st December 2020.

The Government of the Republic of Zambia 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 Zambia 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 Zambia 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 Zambia’s debt are the governments of Belgium, France, Japan and the United Kingdom.

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 States of America.

Credit AdobeStock©Jaynes GalleryDanita Delimont

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

The Government of the Democratic Republic of Congo 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 Democratic Republic of Congo 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 Democratic Republic of Congo 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 Democratic Republic of Congo’s debt are the governments of Brazil, France and the Republic of Korea.

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

Credit AdobeStock©Francesca Volpi

The Saudi G20 Presidency and the Paris Forum concluded on 8 July 2020 a high-level ministerial virtual conference. The conference discussed challenges around international capital flows volatility – as exacerbated in emerging market economies by the unprecedented COVID-19 crisis - and possible policy responses to help restoring sustainable flows of capital and mobilizing robust financing for development.

The conference was co-chaired by Mr. Mohammed Aljadaan, Minister of Finance of the Kingdom of Saudi Arabia, and Mr. Bruno Le Maire, Minister of Economy and Finance of France. The conference brought together Finance Ministers and Central Bank Governors, heads of International Financial Institutions (IFIs), chief executives of private financial institutions and prominent scholars.

In response to the unprecedented health and economic crisis presented by the COVID-19 pandemic, governments and central banks around the world have taken exceptional measures, including unprecedented fiscal, monetary and financial-stability measures. Additionally, the launch of the historic Debt Service Suspension Initiative (DSSI) could provide around $14 billion in immediate and critical liquidity relief by official bilateral creditors alone for the poorest nations in 2020, as estimated by the World Bank Group.

This global response is delivering results; however, the situation remains challenging. Capital outflows from many emerging and developing countries have reached unprecedented levels, and their ability to draw upon an international pool of capital in a robust manner has been called into question. In this context, related to financial resilience, debt sustainability considering progress on Debt Service Suspension Initiative as well as on development finance agenda amid the COVID-19 pandemic.

Speaking at the event, Mohammed Aljadaan, Saudi Minister of Finance, said “In response to COVID-19 pandemic, G20 countries have implemented unprecedented fiscal, monetary and financial stability measures and ensured that international financial institutions can provide critical support to developing and low-income countries. As the crisis remains unfolding, we will coordinate with G20 member countries to promote sustainable financing for developing countries, support the return of capital flows to emerging markets and developing countries, build resilience and promote more sustainable sources of financing.”

Bruno Le Maire, Minister of Economy and Finance of France, said, “An unprecedented crisis requires extraordinary decisions. The G20 and the Paris Club took a historic step to address the COVID-19 impact by launching the “Debt Service Suspension Initiative” (DSSI) to the benefit of the poorest countries, in particular in Africa. We need to continue working together to ensure its successful implementation. In the next steps, we also need the right tools to support countries suffering from capital outflows. We cannot let this crisis destroy years of efforts to attract investors and support growth”.

The conference fostered in-depth discussions on key issues through three parallel breakout sessions.

The first session, “Sustainable Finance for Africa Development,” included conversations on the DSSI and explored ways to restore market access for African countries, increase international private flows and support the African private sector, especially SMEs.

The second session, “Policy options to tackle the current situation and support the return of capital flows to emerging economies,” focused on the outlook for capital flows, exploring tools that can be mobilized to mitigate capital outflow risks, and the role of the IMF in long-term financing. Speaking at the session, Ahmed AlKholiefy, Governor of the Saudi Arabian Monetary Authority emphasized that “Restoring flows of capital is essential to upholding the stability of the global financial system. We are working with G20 countries to better understand the drivers of these volatilities and discuss policy responses to mitigate them.”

The third session, “Building further resilience and more sustainable sources of financing for the future,” explored ways to improve emerging and developing countries’ resilience, including through domestic capital markets development, while considering the immediate and medium-term trade-offs between different policies as well as the role of international cooperation.

The conference’s outcomes will feed into the discussion of the G20 Finance Ministers and Central Bank Governors’ meeting to be held virtually on July 18, 2020, under the Saudi G20 Presidency.