ISLAMABAD: Pakistan on Monday signed a debt relief agreement with France for suspension of $107 million loan under the G-20 Debt Service Suspension Initiative (DSSI) framework allowed to the poor nations to absorb Covid-19 shock.

This amount, initially repayable between July and December 2021 will now be repaid over a period of six years, including one-year grace period in semi-annual installments.

The agreement was signed by Secretary Economic Affairs Mian Asad Hayaud Din and French Ambassador in Islamabad Nicolas Galey.

The GOP has already signed agreements with the French Republic for suspension of $261 million. Due to the support extended by the development partners of Pakistan, the G-20 DSSI had provided the fiscal space to deal with the country’s urgent health and economic needs.

The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021 is about $3.688bn.

Pakistan has already concluded and signed 93 agreements with 21 bilateral creditors for the rescheduling of its $3.15bn debts under the G-20 DSSI framework. The signing of the latest loan agreement brings this total to $3.257bn.

Negotiations for remaining agreements to be signed under the G-20 DSSI are in progress, the Economic Affairs Division said.

Published in Dawn, June 28th, 2022