Author: Toshiro Nishizawa, University of Tokyo
The G20 recently extended its Debt Service Suspension Initiative (DSSI) for the rest of 2021, reflecting the severity of liquidity shortages facing the worlds poorest countries due to the COVID-19 pandemic. But it is only a temporary measure.
A Common Framework for Debt Treatments beyond the DSSI endorsed by the G20 and the Paris Club in November 2020 could be a remedy to address debt sustainability problems going forward. While the Common Framework is a welcome step forward in the G20s concerted efforts to facilitate debt treatment for DSSI-eligible countries, it still needs to address fair burden sharing challenges.
The G20s move to temporarily ease financing constraints for vulnerable…
Read the full article at: https://www.eastasiaforum.org/2021/06/07/can-the-g20-shift-the-global-debt-finance-landscape/
