Pakistan signs Debt Service Suspension Agreement with France

ISLAMABAD, Pakistan: The government of Pakistan has signed a Debt Service Suspension Agreement with the French Republic, amounting to suspension of loans worth US$ 107 million, under the G-20 Debt Service Suspension Initiative (DSSI) framework.

This amount, initially repayable between July and December 2021 will now be repaid over a period of six years (including one-year grace period) in semi-annual instalments.

The agreement was signed in Islamabad on Monday by the Federal Secretary for Economic Affairs Division Mian Asad Hayaud Din and the Ambassador of the French Republic to Pakistan H.E. Nicolas Galey.

The government of Pakistan has already signed agreements with the French Republic for suspension of US$ 261 million.

Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and economic needs of the Islamic Republic of Pakistan.

The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, stands at US$ 3,688 million.

Pakistan has already concluded and signed 93 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of almost US$ 3,150 million.

The signing of above-mentioned agreements brings this total to US$ 3,257 million. Negotiations for remaining agreements to be signed under the G-20 DSSI are on-going.

This post was last modified on June 27, 2022 5:46 pm

Recent Posts