The joint G20/Paris Club Debt Service Suspension Initiative (DSSI) for the poorest countries most vulnerable to the impact of the Covid-19 pandemic has benefited 42 countries, and the Paris Club reiterates its commitment to implement the common debt treatment framework, according to the organisation's Annual Report 2021 published on Tuesday 14 June.
Since April 2020, when the DSSI was launched and subsequently extended to the end of 2021, Paris Club creditors have deferred a total of US $4.6 billion in debt service for 42 eligible countries that applied for the moratorium, according to the report.
For the three countries - Chad, Ethiopia and Zambia - that have formally requested debt treatment under the Common Framework, the Paris Club is committed to making significant and rapid progress in the ongoing negotiations, and appreciates the cooperation established with China and Saudi Arabia, which are co-chairs of the creditor committees for Ethiopia and Chad respectively.
In the context of the implementation of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, the Paris Club notes that it signed a multilateral agreement with Sudan on 15 July 2021 - an agreement that has, however, been suspended since the removal of the transitional government.
This suspension will last until the situation improves and the implementation of the International Monetary Fund programme resumes.
See the Paris Club annual report: https://aeur.eu/f/24d (Original version in French by Aminata Niang)