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G20 historic debt Deal
November 18 , 2020
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- G20 strikes historic debt pact to help poor Covid-hit countries
- It is the first time the G20 agreed on a common approach for restructuring government debt
- It is because the Covid crisis leaves poorer nations at risk of default.
- The USA would be monitoring its implementation.
- China accounted for 63% of overall debt owed to G20 countries in 2019.
- Zambia is on the brink of becoming Africa’s first COVID-era sovereign default.
- The scheme borrows heavily from rules established by Paris Club group.
Paris Club group
- It was established in 1956.
- It is an informal grouping that meets on monthly basis at Paris.
- It is to find workable solutions to payment problems faced by debtor nations.
- It has 19 member countries.
- Most of them are Scandinavian countries, European countries, USA and UK.
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