India agreed upon extending Debt Service Suspension Initiative in G20 meeting

In G20 Financial Ministers and Central Bank Governors (FMCBGs) meeting Finance minister of India, Nirmala Sitharaman agreed upon extending G20 Debt Service Suspension Initiative (DSSI) for six months. India has ensured that it updates the commitments in G20 Action Plan in response to COVID-19 to keep it relevant and effective as the crisis develops, the Ministry of Finance tweeted.

G20 endorsed Debt Service Suspension Initiative (DSSI) in April to support 73 poorer countries by suspending payments on official bilateral debts until the end of this year. World Bank Group president David Malpass previously urged extending this time frame till the end of 2021 and asked the leaders of the poorest countries to speak out about the need of lighter debt burden from creditor nations.

G20 Finance ministers and Central Bank Governors (FMCBGs) gathered under the Saudi G20 presidency to discuss global economic development and outlook downside risks to support a swift and sustained global economic recovery. Agenda of the meeting included discussion on updates on the G20 Action Plan to support the global economy in the time of pandemic and evaluation on the progress of Debt Service Initiative.

"International policy coordination on sovereign debt restructuring should primarily be guided by the aim of helping low-income countries to overcome the fiscal stress caused by COVID-19 pandemic", Finance minister stated in the meeting. Traditionally FMCBGs meeting is held in line with International Monitory Fund (IMF) and World Bank Group annual meetings, this year under the given circumstances meeting held virtually. This year's meeting ended with a joint Communique with consents international measures to achieve global economic recovery.