Pakistan and South Korea Monday signed a Debt Service Suspension Agreement to defer payment of loans of $19.911 million under the G-20 Debt Service Suspension Initiative (DSSI) framework.
According to the Ministry of Finance press statement, this amount initially had to be repaid between July and December 2021, but will be repaid over a period of six years (including a one-year grace period) in semi-annual installments, the statement added.
Due to the support extended by the development partners of Pakistan, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and economic needs of the Islamic Republic of Pakistan.
The total amount of debt, that is to be suspended under the DSSI framework, covering the period of repayment from May 2020 to December 2021, stands at $3,686mn.
Pakistan has already concluded and signed 104 agreements with 21 bilateral creditors for the deferment of its debt repayments under the G-20 DSSI, amounting to $3,633mn.
The signing of the above-mentioned agreement brings this total to $3,653mn. Negotiations for the remaining agreements to be signed under the G-20 DSSI are ongoing.