With reference to the “G20 Common Framework”, consider the following statements:
- It is an initiative endorsed by the G20 together with the Paris Club.
- It is an initiavtive to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2022 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- Chad has made history by becoming the first country to officially request debt restructuring under the G20 Common Framework.
- This framework was introduced last year with the help of the Paris Club and is designed to deal with insolvency and protracted liquidity problems faced by countries impacted by COVID-19.
- The G20 Common Framework is an initiative endorsed by G20 and Paris Club, and it is intended to address unsustainable debts while implementing an IMF-supported reform program.