Due to the increased debt vulnerability in low-income countries, largely in Africa, the European Council has approved a call to offer debt relief to African countries.
Part of it includes the Paris Club Debt Service Suspension Initiative which allows a moratorium period until 30 June 2021, also for countries unable to sustain their debt levels, additional relief measures may be put in place.
The European Council promises a transparent and holistic implementation of the initiative.
Opportunities to negotiate debt on a case by case basis will also be made available thus spurring informed decisions for both borrowers and lenders as a part of the debt relief measures.
