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Q4·GS Paper 1 · Prelims 2022

G20 initiative for supporting low-income countries with debt

IRGlobal Economic GovernanceStatement-basedMediumCurrent-affairs-linked

Question

With reference to the "G20 Common Framework", consider the following statements: Which of the statements given above is/are correct?

  1. 1.

    It is an initiative endorsed by the G20 together with the Paris Club.

  2. 2.

    It is an initiative to support Low Income Countries with unsustainable debt.

Options

a

1 only

b

2 only

c

Both 1 and 2

Answer
d

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.

The "Common Framework" is the unified multilateral mechanism engineered by the G20 and Paris Club exclusively for low-income sovereign debt relief.

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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