Council conclusions on international debt relief in particular for African countries

Summary:

Set of conclusions adopted by the Council of the European Union on 30 November 2020 concerning a common approach to international debt relief efforts for African countries.

Further information:

These conclusions follow up on a call made by the European Council on setting out a common approach in this respect. They highlight the increasing debt vulnerability in low income countries, and underscore the EU's support for a coordinated international approach to address the matter.

The conclusions welcome the G20 - Paris Club Debt Service Suspension Initiative (DSSI), which offers a temporary debt moratorium to the poorest countries to help them manage the impact of the COVID-19 (coronavirus) pandemic. The Council commits to a full and transparent implementation of this initiative.

The Council recognises that for countries with unsustainable debt levels further debt relief may be required. It welcomes the G20 agreement on a Common Framework for Debt Treatments beyond the DSSI. In this context, the Council advocates the negotiation of debt restructuring where necessary, on a case-by-case basis, while ensuring strong conditionality on public financial management, anti-corruption frameworks and domestic resource mobilization in the context of an IMF programme.

The Council also stresses that debt transparency is critical for a sound assessment of debt sustainability, debtor government accountability, and to enable informed decisions for borrowers and creditors in the context of debt relief efforts.

Official

Council of the European Union: Press Release, 30/11/2020: Debt relief efforts for African countries: Council approves conclusions https://www.consilium.europa.eu/en/press/press-releases/2020/11/30/debt-relief-efforts-for-african-countries-council-approves-conclusions/

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