Follow Us on Google News
ISLAMABAD: Pakistan is expected to receive a debt relief this year from the Paris Club.
The reports stated that Pakistan, among other countries will be granted a waiver as part of a global push to give debt relief to the least-developed countries.
A number of countries will get Paris Club debt relief this year under a deal with the G20, a group of state creditors. Both groups agreed last month to freeze the debt payments of the 77 poorest countries in 2020 to free up cash for them to fight the coronavirus pandemic.
So far, the Paris Club has signed agreements only with the Caribbean islands of Dominica and Grenada, and Mali and Nepal, the source said.
The report stated that the Paris Club asks borrowing governments to seek the same debt repayment conditions from private-sector creditors. With this exception to that rule, the rating agencies now understand that the debt relief program is not negative for ratings.
Countries eligible for the program have a combined $36 billion falling due this year, composed of $13 billion owed to other governments, $9 billion to private creditors, and the rest to multilateral development lenders stated the report.
Read more: Jalila Haider becomes one of BBC’s 100 inspiring women
