Pakistan among latest countries to get Paris Club debt relief

The Paris Club of creditor nations have agreed to suspend debt service payments from Pakistan, Chad, Ethiopia and the Republic of Congo as part of a G20 debt relief deal, the group said. The latest agreements bring to 12 the number of countries to receive debt relief under the deal with a total of $1.1 billion in debt deferred as a result.

The Group of 20 leading economies and the Paris Club agreed in April to freeze debt payments of the 77 poorest countries this year to free up cash to fight the coronavirus pandemic.

Earlier in May, Pakistan formally requested members of G-20 nations for debt relief with a commitment of not contracting new non-concessional loans, except those allowed under the International Monetary Fund (IMF) and World Bank guidelines. The formal requests were sent to individual countries under the G-20 Covid-19 Debt Service Suspension Initiative.

Source: Express Tribune