debt suspension

Pakistan signs pact with France for $107 million debt suspension

debt suspension

The Economic Affairs Division announced on Monday that Pakistan and France had signed a contract for the suspension of loans totaling $107 million under the G20 Debt Service Suspension Initiative (DSSI).

The Economic Affairs Division announced in a press statement that the amount, which was originally repayable between July and December 2021, would now be paid back over a six-year period in semi-annual instalments, with a one-year grace period.

According to the announcement, the agreement was signed by Nicolas Galey, French Ambassador, and Mian Asad Hayaud Din, Secretary of the Ministry of Economic Affairs.

“Agreements for the suspension of $261 million between Pakistan’s government and the French Republic have already been inked. The G20 DSSI has given the fiscal space required to address the critical health and economic requirements of the Islamic Republic of Pakistan thanks to the assistance offered by Pakistan’s development partners,” the statement included.

Read more: Pakistan gets relief after G20 agrees to additional 6-month debt suspension

A total of $3,688 million in debt has been deferred and re-scheduled within the DSSI framework for the time frame of May 2020 to December 2021.

“In accordance with the G20 DSSI framework, Pakistan has already reached and signed 93 agreements with 21 bilateral creditors for the rescheduling of its obligations, totaling over $3,150 million. The above-mentioned agreements have been signed, bringing the total to $3,257 million,” said in the press statement.

It further stated that discussions on the signing of the remaining contracts under the DSSI framework were still ongoing.

Pakistan had earlier this month signed two agreements for the suspension of $197.5 million in loans with Japan and Switzerland.

Of this sum, $191.60 million was payable to the Japanese International Cooperation Agency between January and June 2021, while $5.89 million was owed to the Swiss Confederation’s government between July and December 2021.

A similar arrangement for the suspension of the debt servicing on $846 million was made in March with the Saudi Fund for Development.

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