Question
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?
Correct Answer — C
Explanation
Correct answer: (c) Both 1 and 2
Statement 1 is correct: The G20 Common Framework for Debt Treatments (beyond the Debt Service Suspension Initiative) was formally endorsed in November 2020 by the G20 together with the Paris Club of sovereign creditor nations.
Statement 2 is correct: It was specifically created to coordinate case-by-case sovereign debt restructuring for Low-Income Countries (LICs) facing unsustainable debt distress worsened by the pandemic.