When part of a G20 debt reduction agreement, the organization said the Paris Club of creditor nations agreed to postpone debt service payments from Chad, Ethiopia, Pakistan, and the Republic of Congo.
In April, the Group of 20 leading economies and the Paris Club, an informal association of state creditors led by the French Ministry of Finance, decided to suspend this year’s debt payments from the 77 poorest countries in order to free up cash to counter the coronavirus pandemic.
The new agreements increase the number of countries receiving debt relief under the deal to 12, resulting in a total of $1.1 billion in deferred debt, the Paris Club said, adding 30 countries had requested to gain.
The Paris Club decided earlier in April to suspend the debt payments of the 77 poorest countries by 2020 to free up cash for them to combat the coronavirus pandemic. Under the G-20 COVID-19 Debt Service Suspension Programme, the formal requests were submitted to the individual countries. Pakistan owes 11 members of the Group of 20 rich nations $20.7 billion.
According to the ministry of economic affairs, an amount of $1.8 billion will mature from that sum by December 2020, including interest payments.
Extracted from City42 News