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

The Government of the Republic of Niger 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 Niger 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 Niger 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 the Republic of Niger’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.

Credit AdobeStock©homocosmicos

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

The Government of Burkina Faso 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 Burkina Faso 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 Burkina Faso 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 Burkina Faso’s debt are the governments of Belgium, France and Spain.

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

Credit AdobeStock©Alexander

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

The Government of Nepal 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 Nepal 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 Nepal 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 Nepal’s debt are the governments of Belgium, France, Japan and the Republic of Korea.

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

Credit AdobeStock©baisa

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

The Government of the Commonwealth of Dominica 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 Commonwealth of Dominica 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 Commonwealth of Dominica 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 Commonwealth of Dominica’s debt are the governments of France and the United Kingdom.

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, the Russian Federation, Spain, Sweden, Switzerland, the Republic of Korea and the United States of America.

Credit AdobeStock©peterswelt.reisen

Paris and Washington D.C., April 30, 2020 - Delegates representing official and private creditors released the following joint statement after an extraordinary virtual meeting of the Paris Club and the Institute of International Finance (IIF) to discuss the Debt Service Suspension Initiative (DSSI) agreed by the G20 and the Paris Club:

“Following this week’s very productive discussion, the Paris Club and IIF have agreed to collaborate in support of the DSSI agreed by the G20 and the Paris Club; while noting the complexity of attaining debt service suspension in a short time frame, private creditor representatives expressed strong support for the initiative and are committed to explore how best to advance this initiative on comparable terms, upon the specific request of borrowing countries.”

As the economic shock of the COVID-19 pandemic unfolds, the situation is particularly dire for the poorest and least developed countries now facing acute healthcare and humanitarian challenges. Many have high external debt burdens that severely limit their fiscal policy space to respond to the crisis. The creditor base—including official bilateral and multilateral creditors as well as private sector lenders and bondholders—is now much more diverse, making creditor coordination more crucial. With global commodity prices near their lowest levels in almost 50 years and ongoing oil market turbulence, many of these countries are seeing export revenues plummet. 

Participants discussed the DSSI of April 15, 2020 agreed by the G20 and the Paris Club, including the proposed scope of countries, suspension period of May-December 2020, and provisions of the official creditors’ term sheet. Private sector creditors expressed deep appreciation for the challenges facing the most vulnerable countries, highlighting their commitment to work constructively to find ways to implement the initiative—while noting the constraints on private sector participation. Private sector creditors also reconfirmed their willingness—as noted in the IIF letter dated April 9, 2020 to the IMF, the World Bank, the OECD and the Paris Club—to work in the coming weeks on terms of reference for an effective voluntary private sector participation. There was broad agreement on the importance of active collaboration between official and private creditors on this vital initiative.

The meeting convened all 22 Paris Club official creditors to meet with over seventy representatives from the private sector.[1]

[1] Paris Club-IIF meetings, typically held annually, are designed to foster dialogue and cooperation among all creditors, official and private alike.  This extraordinary session represents the 20^th Paris Club-IIF meeting.