G-20 DSSI Framework: Signing of two $197.49 million Debt Service Suspension Agreements

ISLAMABAD: The government of Pakistan on Wednesday signed two debt service suspension agreements equivalent to the suspension of loans worth $197.49 million, under the Debt Service Suspension Initiative (DSSI) of the G-20.

Of this total amount, $191.60 million was owed to JICA during the period January to June 2021 and $5.89 million was owed to the Government of the Swiss Confederation during the period July to December. 2021. These amounts will now be repaid over a period of six years (including a one-year grace period) in semi-annual installments.

With support from Pakistan’s development partners, including JICA and the Government of the Swiss Confederation, the G-20 DSSI has provided the necessary fiscal space to address the urgent health and economic needs of the Islamic Republic of Pakistan. . The total amount of suspended and rescheduled debt under the DSSI, covering the period from May 2020 to December 2021, is $3,688 million.

Forex, PSE and bank liabilities not included: 88.8 billion dollars of external debt recorded at the end of March

Pakistan has already reached and signed 91 agreements with 21 bilateral creditors for debt rescheduling under the G-20 DSSI, amounting to a rescheduling of almost $2,953 million.

The signing of the aforementioned agreements brings this total to $3,150 million. Negotiations for the remaining agreements to be signed under the G-20 DSSI are ongoing.

Copyright Business Recorder, 2022

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