Pakistan inks deal with France to suspend $107mn loans under G20 initiative

ISLAMABAD – Pakistan has signed a debt suspension agreement with the French Republic, to suspend loans worth $107 million under the G-20 Debt Service Suspension Initiative (DSSI) framework.

A press release issued by Economic Affairs Division said the amount, which was firstly repayable in 2021, would now be repaid over a period of six years while the cash-strapped country also gets a one-year grace period in semi-annual installments.

The Economic Affairs Division said the G20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and economic needs of Pakistan.

The GOP has already signed agreements with the France for suspension of USD 261m. 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 country.

— Economic Affairs Division, Government of Pakistan (@eadgop) June 27, 2022

The South Asian country has already inked 93 agreements with 21 bilateral creditors for the rescheduling of its debts under the G20 DSSI framework, amounting to a rescheduling of almost $3,150m.

Meanwhile, the signing of the recent deal brings this total to $3,257m, Economic Affairs Division officials said.

Earlier, Pakistan struck two debt service suspension agreements with Japan and Switzerland for the suspension of $197.5m in loans. A parallel agreement was inked with the Saudi Fund for Development for the suspension of debt servicing of $846m earlier in March.