Question
UPSC Prelims 2022 Question:
With reference to the “G20 Common Framework”, consider the following statements:
- It is an initiative endorsed by the G20 together with the Paris Club.
- It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
Answer (Detailed Solution Below)
Option 3: Both 1 and 2
Detailed Solution
Explanation:
- The Common Framework for debt treatment beyond the Debt Service Suspension Initiative (DSSI) is an initiative endorsed by the G20, together with the Paris Club, to support, in a structural manner, Low Income Countries with unsustainable debt. The Common Framework represents a step change for official creditors, bringing together the Paris Club and G20 official bilateral creditors in a coordinated process. So, statement 1 and statement 2 are correct.
- To date, three countries have requested a Common Framework treatment and in April 2021 there has been the launch of the first Creditor Committee for a debt treatment for Chad.
Therefore, option (3) is the correct answer.
Subject: Economics| Economic Organisations and Conventions
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