The G20 ِAgrees on a Framework For Structuring Debt in The Future

The Group of Twenty (G20) finance ministers agreed for the first time on Friday on a new joint framework for restructuring government debt in anticipation that the coronavirus crisis could lead some poor countries to need significant debt forgiveness.

Large creditors, including China, are expected to follow common guidelines that outline how to reduce or restructure debts deemed unsustainable.

Under the framework, the creditor nations will negotiate collectively with the debtor state, which is expected to seek the same terms of treatment from private creditors.