G20 initiative for supporting low-income countries with debt
Question
With reference to the "G20 Common Framework", consider the following statements: Which of the statements given above is/are correct?
- 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.
Options
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Explanation
Both statements are correct. The G20 Common Framework for Debt Treatments is a multilateral initiative endorsed jointly by the G20 and the Paris Club. It was specifically launched to coordinate and facilitate debt restructuring and relief for Low Income Countries grappling with unsustainable debt burdens following the COVID-19 economic shock.
Answer: (c).
Question details
Year
2022
Paper
GS Paper 1
Question
Q4
Subject
International Relations
Sub-topic
Global Economic Governance
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
G20 Bali Summit / Common Framework for Debt Treatments 2022
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