PARIS: The Paris Club of creditor nations have so far waived $1.1 billion euros of debt servicing payments due this year from some of the worlds poorest countries under a G20 deal and more relief is on the way soon, the group said on Wednesday.
The Paris Club said it had agreed to suspend interest and principal repayments from Chad, Ethiopia, Pakistan and Republic of Congo in the latest wave of countries given some financial leeway to help them focus on fighting the coronavirus pandemic.
The Group of 20 leading economies and the Paris Club, an informal group of state creditors coordinated by the French finance ministry, agreed in April to freeze debt payments of the 77 poorest countries this year.
The latest agreements bring to 12 the number of countries to receive debt relief under the deal, with a total of $1.1 billion in debt coming due this year deferred to 2022-2024, the Paris Club said.
“Another 18 are being processed and should be wrapped up quickly,” Paris Club president Odile Renaud-Basso told journalists on a conference call.
G20 creditors not members of the Paris Club, including China, are supposed to waive debt payments bilaterally on the same terms under the deal with the G20.
A decision on whether to extend the payment suspensions would most likely come at a G20 summit in November, though some countries might need an outright reduction of their debt burdens, Renaud-Basso said.
The countries potentially eligible under the deal have $36 billion falling due this year, with $13 billion owed to other governments, $9 billion to private creditors and $14 billion to multilateral lenders, according to World Bank data.
Pakistan among latest countries to get Paris Club debt relief
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Pakistan among latest countries to get Paris Club debt relief
- Other countries to benefit from the arrangement include Chad, Ethiopia and Republic of Congo
- Paris Club president Odile Renaud-Basso says some countries might need an outright reduction of their debt burdens
Pakistan engages Saudi Arabia, China in bid to ease surging Middle East tensions
- Pakistan’s foreign minister stresses need for de-escalation in conversations with Chinese, Saudi counterparts
- Tensions in the Middle East continue to remain high as conflict between US, Israel and Iran intensifies
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar spoke to the foreign ministers of Saudi Arabia and China on Tuesday, stressing the importance of diplomatic engagement to de-escalate tensions in the Middle East as the Iran war intensifies.
Pakistan has constantly engaged regional countries in efforts to broker a ceasefire in the Middle East, after the US and Isreal launched coordinated strikes against Iran on Feb. 28.
Iran launched fresh attacks on Gulf countries on Tuesday morning, where it has targeted US military bases in recent weeks. In addition to firing missiles and drones at Israel and American bases in the region, Iran has also been targeting energy infrastructure which, combined with its stranglehold on the Strait of Hormuz, has sent oil prices soaring worldwide.
Dar spoke to Saudi Foreign Minister Prince Faisal bin Farhan to discuss developments in the Middle East and ongoing deliberations at the UN Security Council, Pakistan’s foreign office said in a statement.
“DPM/FM shared Pakistan’s perspective, underscoring the importance of continued coordination and diplomatic engagement to support de-escalation and promote peace and stability across the region and beyond,” the statement said.
Dar, who also serves as Pakistan’s foreign minister, spoke to Chinese foreign minister Wang Yi over the telephone separately. The two discussed the evolving regional situation and broader global developments.
Dar underscored the need to ease tensions in the Middle East and the wider region during the conversation, the foreign office said.
Yi appreciated Pakistan’s constructive efforts aimed at promoting de-escalation and stability in the region, it added.
“The two leaders stressed the importance of de-escalation and emphasized the need to pursue dialogue and diplomacy in accordance with the principles of the UN Charter,” the foreign office’s statement said.
The conflict in the Middle East has hit Pakistan hard as well, forcing Islamabad to hike petrol and diesel prices by Rs55 per liter last Friday.
Pakistan’s government has also announced a set of austerity measures, which include closing schools and cutting down on government expenditures, as it evaluates petrol stocks and looks for alternative supply routes.
