With reference to the "G20 Common Framework", consider the following statements:

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?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: Both 1 and 2

The Common Framework for Debt Treatments beyond the DSSI is an agreement of the G20 and Paris Club countries to coordinate and cooperate on debt treatments for up to 73 low income countries that are eligible for the Debt Service Suspension Initiative (DSSI).

The G20 launched the 'Common Framework for Debt Treatments beyond the DSSI' in November 2020, with Chad becoming the first country to join on 27 January 2021, followed by Zambia and Ethiopia. The Framework is intended to co-ordinate debt reprofiling and restructuring undertaken by official and private creditors, extending in scope beyond the modest debt deferral available under the Debt Service Suspension Initiative (DSSI). A key principle of the Framework is to incorporate non-Paris Club member lenders, such as mainland China, India, Saudi Arabia, Kuwait, and Turkey, in addition to private creditors, to ensure "fair" burden sharing across all creditors.