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 Nepal is eligible to benefit from the extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Government of Nepal an extension of the time-bound suspension of debt service due from 1^st January to 30^th June 2021.

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 and its addendum. This initiative will also contribute to help the Government of Nepal 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 Government of Nepal’s debt are the governments of France, Japan and the Republic of Korea.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, 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_103348966 ©baisa

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-Bissau is eligible to benefit from the extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Guinea-Bissau an extension of the time-bound suspension of debt service due from 1^st January to 30^th June 2021.

The Government of the Republic of Guinea-Bissau 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-Bissau 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-Bissau 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-Bissau’s debt are the governments of Brazil and the Russian Federation.                                                                     

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Canada, Denmark, Finland, France, 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_183084181R ©Xavier

The Paris Club welcomes the statement released by China, France, India and Saudi Arabia on the first meeting for a debt treatment for Chad under the Common Framework for Debt Treatments beyond the DSSI.

1st meeting for a debt treatment for Chad under the Common Framework for Debt Treatments beyond the DSSI

Statement

April 15, 2021

Following the G20 endorsement of the “Common Framework for Debt Treatments beyond the DSSI” under the Saudi G20 Presidency last November, which was also endorsed by the Paris Club, the Chadian authorities have submitted a formal request for a debt treatment to its G20 and Paris Club creditors.

All G20 and Paris Club creditors with claims on Chad have formally formed a creditor committee, co-chaired by France and Saudi Arabia, to discuss the Chadian authorities’ request. Its first meeting was held, through videoconference, on 15 April 2021.

The IMF and World Bank staff representatives had the opportunity to present the macroeconomic outlook and debt vulnerabilities currently faced by Chad.

Consistent with their national laws and internal procedures, China, France, India and Saudi Arabia are committed to implement the Common Framework in a coordinated manner to respond to the formal request of the Chadian authorities.

As outlined in the Common Framework, we stressed the importance for private creditors and other official bilateral creditors of Chad to providing debt treatments under the Common Framework on terms at least as favorable, in line with the comparability of the treatment principle.

As of today, 37 countries have requested to benefit from the Paris Club’s implementation of the extension of the Debt Service Suspension Initiative (DSSI) until June 30, 2021.

Of these, 28 have already signed a memorandum of understanding with the Paris Club to implement this DSSI extension. These countries are: Angola, Burkina Faso, Cabo Verde, Cameroon, Comoros, Congo (Democratic Republic of), Congo (Republic of), Dominica, Ethiopia, Guinea, Ivory Coast, Kenya, Lesotho, Madagascar, Maldives, Mali, Mauritania, Mozambique, Niger, Pakistan, Papua New Guinea, Saint Vincent and the Grenadines, Samoa, Senegal, Sierra Leone, Togo, Uganda and Zambia.

Portugal and Turkey, which are not members of the Paris Club, signed jointly with the Paris Club creditors memoranda of understanding implementing the DSSI extension. Turkey participates in the reorganization of the debt of Republic of Congo and Portugal in that of Cabo Verde.

Given the significant financing needs that the eligible countries to the Debt Service Suspension Initiative (DSSI) are expected to face this year, Paris Club members and the G20 endorsed its final extension by 6 months through end-December 2021.

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 members underline that all official bilateral creditors and their institutions should continue to implement this initiative fully and in a transparent manner. They reiterate their call on private creditors to participate in the initiative on comparable terms when requested by eligible countries.

This final extension of the DSSI will allow beneficiary countries to mobilize more resources to face challenges of the crisis and, where appropriate, to move to a more structural approach to address debt vulnerabilities including through an Upper Credit Tranche quality IMF-supported program and a Common Framework Treatment. In that context, Paris Club members remain fully committed to implementing in a coordinated manner the Common Framework for Debt Treatments beyond the DSSI to address debt vulnerabilities on a case-by-case basis. They look forward to the coming first meeting of the first creditor committee.  Paris Club members stress the importance for private creditors and other official bilateral creditors of providing debt treatments under the Common Framework on terms at least as favorable, in line with the comparability of treatment principle.

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) and its addendum also endorsed by the G20, the Paris Club recognized that the Republic of Maldives is eligible to benefit from the extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Maldives an extension of the time-bound suspension of debt service due from 1^st January to 30^th June 2021.

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 and its addendum. 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 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 Maldives’ debt are the governments of France and Japan.

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