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<p>In 2020 the G20 and Paris Club agreed to the Debt Service Suspension Initiative
(DSSI) which has provided participating countries with fiscal space to respond to
the pandemic, freeing up resources to fund social, health and economic measures. Preliminary
estimates suggest the DSSI has suspended over $12.7 billion in debt service repayments.</p><p>
</p><p>In addition, to deliver a longer-term, more sustainable approach to dealing
with debt vulnerabilities the UK and its G20 partners are now focusing their attention
on the Common Framework for Debt Treatments. Agreed in 2020, the Common Framework
was a landmark achievement for the G20. It commits both new lenders and more traditional
lenders in the Paris Club to coordinated debt treatments, including debt cancellation
if required. This should pave the way for more equitable and effective case-by-case
restructurings for low-income countries.</p>
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