The governments of the Export Credit Agencies, members of the Paris Club, will take part in this initiative and suspend payments during the period May 1 – December 31, 2020.
The initiative will only affect maturities due under already agreed Paris Club Agreements, so called PRD (Previously Rescheduled Debt) and will not affect new contracts that are currently being honored under ongoing and recently finished projects.
At this stage only Official Bilateral Creditors are affected. Private creditors will be called upon to participate on a voluntary basis.
Terms for the debt service suspension initiative for the poorest countries:
IDA is the part of the World Bank that helps the world’s poorest countries.
A date set to ensure that only credits/contracts etc. granted before this date will be affected by a debt rescheduling, payment suspension or other debt initiative.
The Paris Club is the forum where public and officially guaranteed export credits are renegotiated when a country has encountered such great payment problems that the country can no longer honour its commitments.