The G-20 Finance Ministers and the Governors of the central banks have extended the Debt Service Suspension Initiative (DSSI) relief for six more months. Now the offer will continue till December 2021.
What is Debt Service Suspension Initiative (DSSI)?
- The World Bank and the International Monetary Fund (IMF) had asked G20 countries to establish the Debt Service Suspension Initiative (DSSI) in April 2020. The initiative took effect on May 1, 2020.
- The Debt Service Suspension Initiative offers a temporary suspension of “official sector” or government-to-government debt payments.
- The objective of the DSSI is to help countries concentrate their resources on fighting the pandemic and safeguarding the lives and livelihoods of millions of the most vulnerable people.
- The initiative has delivered about USD 5 billion in relief to more than 40 eligible countries.
- To receive DSSI relief, countries are required to apply for an arrangement with the International Monetary Fund.
