Prelims 2022 · Economy · Question 4
With reference to the "G20 Common Framework", consider the following statements: 1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the statements given above is/are correct?
Answer
Both 1 and 2
Statement 1: Correct. The Common Framework for Debt Treatments beyond the DSSI was endorsed by the G20 and works with the Paris Club, bringing Paris Club and non-Paris Club official bilateral creditors together.
Statement 2: Correct. It is meant to help Low Income Countries facing unsustainable debt by enabling coordinated debt treatment/restructuring.
Therefore, both statements are correct.