ISLAMABAD – Coronavirus debt relief, Pakistan to become 2nd mostbeneficiary country in the World from debt relief program with $2.4 billionsaving.
Pakistan is likely to save $2.4 billion in the ongoing year throughparticipation in a debt relief program, the global lender has revealed.
In total, the developing countries will save up to $12 billion (9.71billion pounds) owed to sovereign and other lenders this year.——————————
In its report, the World Bank has estimated that Pakistan is the secondcountry after Angola (with $3.4 billion savings) to benefit from the DebtService Suspension Initiative (DSSI) from the sovereign creditors. It isfollowed by Kenya with $802 million, according to the data.
The DSSI has the support of the G-20 countries, the World Bank, the IMF andthe Paris Club of sovereign lenders. Unlike some other debt reliefprograms, DSSI offers only short-term relief as it postpones payments untilthe end of the year but does not cancel them outright.——————————
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If savings are compared with the gross domestic product, Bhutan would reapthe most benefits from the plan with 7.3% of GDP savings, followed byAngola at 3.7% and Djibouti at 2.5%.
The World Bank and IMF officials had warned that the pandemic will strikethe developing and emerging countries hard owing to a high level of debt, asharp drop in oil and other commodity prices, and broken healthcare systems.
Via: *Reuters*
