As Islamabad fights a deteriorating economic crisis, the Republic of Korea on Monday varied Pakistan’s $19.911 million loan under the G-20 Debt Service Suspension Initiative (DSSI) framework.
According to the facts, a Debt Service Suspension Agreement was signed between the cash-strapped nation and Korea today. According to a news release released by the EAD, this sum, which was originally due between July and December 2021, would now be reimbursed over a period of six years (including a one-year grace period) in semi-annual installments.
The G-20 DSSI has given Pakistan the financial breathing room it needs to address its pressing health and economic needs, thanks to the help of the country’s development partners.
From May 2020 through December 2021, a total of $3,686,000,000 in debt payments is scheduled to be suspended under the DSSI framework.
To postpone debt repayments of $3,633 million, Pakistan has already signed 104 agreements with 21 bilateral creditors under the G-20 DSSI.
After finalizing the aforementioned deal, the sum is now $3,653,000,000. The remaining G-20 DSSI agreements are still in negotiation.
