The Debt Service Suspension Initiative (DSSI) was a historic and exceptional measure taken jointly by the G20 and the Paris Club on April 15, 2020 to offer support to 73 eligible low-income countries as they weathered the Covid-19 crisis.

The Paris Club has fulfilled its commitments to provide a debt service suspension to all requesting eligible countries. From May 1^st, 2020 to December 31, 2021, Paris Club creditors suspended around USD 4.6 Bn of debt service due by 42 low income countries that signed an agreement with the Paris Club (cf. appendix). Portugal and Turkey, which are not members of the Paris Club, signed jointly with the Paris Club agreements implementing the DSSI and/or its extension. Turkey has participated in the reorganization of the debt of the Republic of Congo and Portugal in that of Cabo Verde and São Tomé e Príncipe.

By implementing the DSSI in a transparent manner, Paris Club creditors have made a significant contribution to support low-income countries during the Covid-19 crisis. The Paris Club’s longstanding experience, as well as the prompt mobilization and commitment of its 22 members, have been instrumental to implement this swift and appropriate response to the crisis within a few weeks of the outbreak of the pandemic.

Despite some implementation challenges, Paris Club creditors consider that the DSSI has been successful in assisting low income countries and demonstrates that coordination among official bilateral creditors can deliver meaningful results. While Paris Club creditors have granted the DSSI to all debtor countries that requested it, they take note that a significant share of eligible countries have not yet concluded agreements with all their other G20 creditors. They note the uneven implementation among official bilateral creditors who agreed to the initiative but also the significant contribution made by the other G20 creditors. They regret the absence of a broad voluntary participation from private creditors. Yet, Paris Club creditors consider that the DSSI has reached its objective to support, in a coordinated manner with G20 non Paris Club members, low-income countries while preserving their market access.

After the expiration of the DSSI at the end of December 2021, Paris Club creditors recall their strong commitment to the ongoing implementation of the G20 and Paris Club Common Framework for Debt treatment Beyond the DSSI for all eligible countries which need a debt treatment consistent with the parameters of an Upper Credit Tranche IMF program. To date, three countries have made a formal request for the benefit of a debt treatment under the Common Framework (Chad, Ethiopia and Zambia). Paris Club members look forward to meaningful progress in the ongoing negotiations, in particular the conclusion between the creditor committee and Chad of a debt treatment in a timely manner for the first review of the IMF program. Paris Club members also urge Chad’s private creditors and other official bilateral creditors to provide a debt treatment on terms at least as favorable. Furthermore, following the staff level agreement reached with IMF last December, Paris Club creditors stand ready to take part in the formation of a creditor committee and proceed without delay on the request from Zambia for a debt treatment within a creditor committee.

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.

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that Saint Lucia is eligible to benefit from the final extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to Saint Lucia an extension of the time-bound suspension of debt service due from 1^st July to 31^st December 2021.

The Government of Saint Lucia 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 Saint Lucia 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 and its addendum. This initiative will also contribute to help Saint Lucia to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to 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 member of the Paris Club which participates in the reorganization of Saint Lucia’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, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

Credit AdobeStock_62461439 ©XtravaganT

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Republic of Senegal is eligible to benefit from the final extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Senegal an extension of the time-bound suspension of debt service due from 1^st July to 31^st December 2021.

The Government of the Republic of Senegal 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 Senegal 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 and its addendum. This initiative will also contribute to help the Republic of Senegal to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to 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 members of the Paris Club which participate in the reorganization of the Republic of Senegal’s debt are the governments of Belgium, Brazil, France, Japan, the Republic of Korea and Spain.

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

Credit AdobeStock_189532423 ©ALF

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Republic of Guinea is eligible to benefit from the final extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Guinea an extension of the time-bound suspension of debt service due from 1^st July to 31^st December 2021.

The Government of the Republic of 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 the Republic of 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 and its addendum. This initiative will also contribute to help the Republic of Guinea to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to 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 members of the Paris Club which participate in the reorganization of the Republic of Guinea’s debt are the governments of France and the Russian Federation.

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

Credit AdobeStock_175474210 ©Fabian

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Togolese Republic is eligible to benefit from the final extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Togolese Republic an extension of the time-bound suspension of debt service due from 1^st July to 31^st December 2021.

The Government of the Togolese Republic 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 Togolese Republic 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 and its addendum. This initiative will also contribute to help the Togolese Republic to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to 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 member of the Paris Club which participates in the reorganization of the Togolese Republic’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, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

Credit AdobeStock_227046848 ©mbrand85