With reference to the ‘’G20 Common Framework’’, consider the following statements:
- It is an initiative endorsed by the G20 together with the Paris Club
- It is an initiative to support Low Income Countries with unsustainable debt
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Explanation:
The G20 Common Framework is an initiative endorsed by the G20 along with the Paris Club to support Low Income Countries with unsustainable debt. The two statements given are:
- It is an initiative endorsed by the G20 together with the Paris Club.
- It is an initiative to support Low Income Countries with unsustainable debt.
Both of these statements are correct. The Common Framework aims to facilitate timely and orderly debt treatment for eligible countries, with broad participation from creditors, including the private sector. It brings together the Paris Club and G20 official bilateral creditors in a coordinated process to help Low Income Countries with unsustainable debt levels.
Therefore, the correct answer is “Both 1 and 2.”
