In reaction to a request made in October 2020 to establish a common position to financial assistance for African countries, the European Council on Tuesday endorsed a series of decisions.
Based on a press release given access to PANA, the decisions showcase the growing weakness of low-income countries to debt,
especially in Africa, and identify the assistance of the European Union for a concerted
global approach to African countries’ debt rescue efforts.
The Council accepted the Paris Club Debt Service Suspension Initiative (DSSI) of the G20,
which provides the poorer nations with a transitory debt moratorium to help them
overcome the major effect of the COVID-19 pandemic and to extend it until 30 June 2021, with the prospect of another six-month extension.
It is also dedicated to the complete and consistent execution of the initiative.
The Committee also recognizes that even more financial assistance might also be needed for nations with uncontrolled debt levels.
It embraces the G20 contract on a ‘Common Debt Treatment Framework beyond the DSSI’
as a significant step forward in the foreign layout of sovereign debt reform.
“In this context, it recommends, on a specific example basis, negotiating debt relief where necessary,
while making sure strong conditionality in the perspective of the International Monetary Fund (IMF) program on management of public funds,
anti-corruption concepts and domestic resource mobilization,” the declaration stated.
In relation, the Committee emphasized that debt accountability is vital in determining the volume of debt sustainability,
the transparency of the debtor government, and the willingness of debtors and lenders to take informed decisions in relation to debt relief efforts.
”It considers that all public debt data must therefore be disclosed and assist foreign efforts to reinforce these efforts.
the accountability of debt in low-income countries, the statement indicated.