The EU Council services are preparing conclusions on international debt relief, in particular for African countries, in response to the conclusions of the European Council of 16 October, which expressed its determination to pursue international efforts to relieve the debt of African countries.
A draft text seen by EUROPE states that the EU Council supports a coordinated international approach to debt relief efforts for African countries, within the relevant multilateral framework, taking into account the severe liquidity pressures resulting from the Covid-19 crisis and the significant increase in the vulnerability of low-income countries.
This project was approved by the Economic and Financial Committee (EFC) on 23 November 2020, the day the EU announced to the G20 that it would mobilise €183 million for debt relief for 29 of the low-income countries, through a contribution to the IMF Fund for this purpose (see EUROPE 12607/10).
According to the text, the EU Council also welcomes the progress made under the G-20 and Paris Club debt service suspension initiative (DSSI) and the G-20 decision to extend the initiative until 30 June 2021, and to consider by the Spring meetings of the IMF and the World Bank whether the economic and financial situation requires a further six-month extension of the initiative.
The EU Council is committed to the full and transparent implementation of the DSSI. It stresses that this initiative has been fundamental in supporting countries that have asked to participate by freeing up budgetary space to finance social, health and economic measures to respond to the pandemic.
The EU Council welcomes the G20 agreement on a ‘Common Framework for Debt Treatments beyond the DSSI’. (Original version in French by Aminata Niang)