With reference to the “G20 Common Framework”, consider the following statements :
- 1.It is an initiative endorsed by the G20 together with the Paris Club.
- 2.It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct ?
Show answer
Answer: C. Statement 1 is correct: the Common Framework for Debt Treatments beyond the DSSI was agreed by the G20 and the Paris Club in November 2020. Statement 2 is correct: it helps low-income countries (those eligible for the Debt Service Suspension Initiative) whose debt has become unsustainable, by restructuring it case by case. So both.
Watch for: Students may think the Paris Club is a separate creditor group with no role, but it co-endorsed the framework.
Why the other options are wrong
- A. Wrong because statement 2 is also correct.
- B. Wrong because statement 1 is also correct; the Paris Club endorsed it with the G20.
- D. Wrong because both statements are correct.
Source to check: Paris Club website (clubdeparis.org), 'Common Framework for Debt Treatments beyond the DSSI' (November 2020); IMF/World Bank notes on the Common Framework
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.