With reference to the "G20 Common Framework", consider the following statements:
- 1.It is an initiative endorsed by the G20 together with the Paris Club.
- 2.It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (c) Both 1 and 2
The Common Framework for Debt Treatments beyond the DSSI was agreed in November 2020 by the G20 along with the Paris Club of official creditors. Its purpose is to restructure, case by case, the debt of low-income countries whose debt has become unsustainable.
- ✓ 1. The G20 and the Paris Club endorsed it together in November 2020. It brings Paris Club creditors and the other G20 official bilateral creditors into one coordinated process.
- ✓ 2. It targets low-income countries with unsustainable debt. Each eligible country's request is handled case by case by a creditor committee, with the IMF and World Bank supporting the talks through their debt sustainability analysis.
Remember · G20 Common Framework (November 2020): G20 together with the Paris Club; case-by-case debt treatment for low-income countries with unsustainable debt, through creditor committees.
Sources
- G20 Italy 2021 (Italian Ministry of Economy and Finance) — The Common Framework for debt treatment beyond the DSSI ↗ “The Common Framework for debt treatment beyond the DSSI (Common Framework) is an initiative endorsed by the G20, together with the Paris Club, last November to support, in a structural manner, Low Income Countries with unsustainable debt. … The Common Framework represents a step change for official creditors, bringing together the Paris Club and G20 official bilateral creditors in a coordinated process.”
Question and answer: UPSC's official GS Paper I (2022, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·