Economy
2022
External Sector
International Organizations

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?

B.2 only
C.Both 1 and 2
D.Neither 1 nor 2
A.1 only

Correct Answer: Option C

The question refers to the Common Framework for Debt Treatments beyond the DSSI (Common Framework).

This initiative is endorsed by the G20 and the Paris Club. It aims to provide structural support to Low-Income Countries facing unsustainable debt.

The framework offers temporary financial relief, enabling these countries to allocate resources towards mitigating crisis impacts.

Statement 1 is correct: The G20 Common Framework is indeed an initiative endorsed by the G20 and the Paris Club.

Statement 2 is correct: The G20 Common Framework aims to support Low-Income Countries with unsustainable debt.

Hence, both statements 1 and 2 are correct.