South Korea has deferred a $19.911 million loan for Pakistan under the G-20 Debt Service Suspension Initiative (DSSI) framework as Pakistan is dealing with a worsening economic crisis. The Debt Service Suspension Agreement was inked today, under which the amount, initially due for repayment between July and December 2021, will now be repaid over a period of six years in semi-annual installments, including a one-year grace period.
Pakistan has signed 104 agreements with 21 bilateral creditors for the deferment of its debt repayments under the G-20 DSSI, amounting to $3,633 million. The total amount of debt that will be suspended under the DSSI framework, covering the period of repayment from May 2020 to December 2021, stands at $3,686 million, with negotiations ongoing for the remaining agreements to be signed.
The G-20 DSSI has provided fiscal support to Pakistan’s health and economic needs, thanks to the support extended by development partners of the country.