France suspends Pakistan s $107m loan repayment

An agreement has been signed between Pakistan and France_ facilitating Pakistan with another six years  including a one-year grace period of repayment of loans amounting to $107mn under the G20 Debt Service Suspension Initiative (DSSI).

A statement issued by the Economic Affairs Division (EAD) of Pakistan on Monday said that the amount which was initially repayable between July and December 2021_ would now be repaid in semi-annual installments.

The agreement was signed by Pakistan's Ministry of Economic Affairs Secretary Mian Asad Hayaud Din and Ambassador of the French Republic to Pakistan Nicolas Galey.

Pakistan government has already signed agreements with France for suspension of $261mn. The fiscal space was necessary to deal with the urgent health and economic needs of Pakistan_ the statement said.

The total amount of $3_688mn of debt has been suspended and rescheduled under the DSSI framework.

The country has already concluded and signed 93 agreements with 21 bilateral creditors for the rescheduling of its debts under the DSSI framework_ amounting to rescheduling of almost $3_150 million. The latest agreement signed with France brings this total to $3_257 million_ the statement mentioned.

It added_ negotiations for the remaining agreements to be signed under the DSSI framework are on the process.