CURRENT AFFAIRS

Detailed explanation-1: -Responding to the pandemic shock in 2020, the G20 (group of 20 largest economies) implemented the Debt Service Suspension Initiative (DSSI) in support of low-income countries. From May 2020 to December 2021, the 73 eligible countries neither paid interest nor repaid their debt.

Detailed explanation-2: -A key DSSI objective was to provide financial resources to help eligible countries battle the COVID-19 pandemic. Accordingly, a requirement to participate in the initiative was that the beneficiary country commits to use these resources to safeguard social, health or economic spending in response to the crisis.

Detailed explanation-3: -It is an initiative endorsed by the G20, together with the Paris Club, to support, in a structural manner, Low Income Countries with unsustainable debt. The Common Framework considers debt treatment, on a case-by-case basis, driven by requests from eligible debtor countries.

Detailed explanation-4: -The Common Framework for debt treatment beyond the DSSI (Common Framework) is an initiative endorsed by the G20, together with the Paris Club, last November to support, in a structural manner, Low Income Countries with unsustainable debt.