$107mn French loans rescheduled

Ministry of Economic Affairs has stated that Pakistan has signed an agreement with France to suspend loans worth $107 million.

The agreement has been signed under the G20 Debt Service Suspension Initiative (DSSI) framework. Federal Secretary for Economic Affairs Division Mian Asad Hayaud Din and Ambassador of the French Republic to Pakistan Nicolas Galey signed the agreement in Islamabad. The amount, which was due to be paid between July and December 2021, will now be repaid over a period of six years (including a one-year grace period) in semi-annual installments as per statement. The agreement for the suspension of loan worth 261 million dollars had been signed already between government and the French Republic. The ministry stated that the relaxation by the G20 DSSI has provided Pakistan with the fiscal space which was necessary to deal with the urgent health and economic needs of the Islamic Republic of Pakistan. The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, stands at $3,688 million,” the ministry noted.

It is worth mentioning that over 93 agreements have been signed between Pakistan and 21 bilateral creditors for the rescheduling of its debts under the G20 DSSI framework, which reschedules the amount worth $3,150 million. The signing of the above-mentioned agreements brings this total to $3,257 million. Negotiations for the remaining agreements to be signed under the G20 DSSI are ongoing.

LEAVE A REPLY

Please enter your comment!
Please enter your name here