Ethiopia, Chad and Congo to benefit from debt moratorium

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Four additional countries will benefit from the debt moratorium, and among them, three African countries: Ethiopia, Chad and the Republic of Congo. The fourth is Pakistan. This announcement was made on June 9 by the Paris Club, which brings together all of the Western countries that hold most of the debts of developing countries.

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Twelve countries now benefit from a deferral of debt service. This means that Ethiopia, Chad, Congo-Brazzaville or even Mali, which had been the very first African country to benefit from this moratorium, will not have to pay their installments this year, but that they will have to do within three years.

This measure had been decided by the main creditor countries, at the instigation of the G20, almost two months ago , in order to allow developing countries and in particular African countries, to devote their financial resources to the response to the coronavirus. 77 countries are now officially eligible for this process, 30 have requested it, and twelve have thus far received a positive response.

This postponement does not in any case mean a cancellation. And only debts contracted with Western States, such as France, the United States or Germany, and emerging States such as China, India or South Africa, are concerned.
Private creditors, businesses and fund managers still refuse to join this initiative.

► The G20 commits to a moratorium on the debt of poor countries

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The G20 commits to a moratorium on the debt of poor countries