With reference to the "G20 Common Framework", consider the following statements:
1. It is an initiative endors

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?

Accepted Answer

Let's examine each statement regarding the "G20 Common Framework":

1. It is an initiative endorsed by the G20 together with the Paris Club: The G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI) was indeed endorsed by the G20 and the Paris Club in November 2020. Its purpose was to facilitate timely and orderly debt treatment for low-income countries with unsustainable debt. This statement is correct.

2. It is an initiative to support Low Income Countries with unsustainable debt: The primary objective of the Common Framework is to provide a structured approach for debt restructuring for eligible low-income countries (LICs) that are experiencing or at risk of debt distress. It goes beyond the DSSI by offering actual debt restructuring rather than just suspension. This statement is correct.

Answer

1 only

Answer

2 only

Answer

Both 1 and 2

Answer

Neither 1 nor 2

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?

Explanation

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