*The United States has said that it has provided $128 million in debtrelief to Pakistan in 2020, under the G20 Debt Service SuspensionInitiative (DSSI).*
“Under the G20 Debt Service Suspension Initiative, the U.S. provided $128million in debt relief to Pakistan in 2020. Through efforts like this, theU.S. and Pakistan are working together to redirect critical resources tothe COVID19 pandemic response,” stated the US Embassy Islamabad, in a tweetpost on Thursday.
The DSSI was approved in April. It offers a temporary suspension of”official sector” or government-to-government debt payments to 73 countriesincluding Pakistan.
The payments covered are not forgiven but delayed, with a repayment periodof five years and a one-year grace period. The re-scheduling is intended tobe what is known as Net Present Value (NPV) neutral.
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The G-20 Finance Ministers and Central Bank Governors in their meeting heldon October 14, 2020 had announced extension in the DSSI for further periodof six months, ie, January-June 2021. This would bring additional debtrelief of $ 800-900 million depending upon exchange rate and interest ratevariation.
According to media reports, Pakistan was expecting a total $ 1.8 billiontemporary relief from the G 20 member countries if agreements with theconcerned countries are reached. Of this, Pakistan can avail $ 613 milliontemporary relief from Saudi Arabia, followed by $ 309 million from China, $23 million from Canada, $ 183 million from France, $ 99 million fromGermany, $ 6 million from Italy, $ 373 million from UK and $ 128 millionfrom the US.
