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?
Correct Answer : c ) Both 1 and 2Explanation :
G20 Common Framework is an initiative endorsed by the G20 together with the Paris Club. It aims to support low income countries with sustainable debt. G20 Common Framework intended to deal with insolvency and liquidity problems along with the implementation of IMF supported reform program.
Till now, only three countries have made requests for debt relief under the Common Framework. These countries are Chad, Ethiopia, and Zambia.
Paris Club is an informal group of official creditors whose role is to find sustainable solutions to the payment difficulties faced by debtor nations.
G20 or Group of Twenty is an intergovernmental forum of 19 countries and European Union.
This question was asked in UPSC Civil Services Prelims 2022 GS Paper 1.
Hence, option (c) is correct.