Paris Club approves debt service waiver for Sierra Leone
The Paris Club of creditors on Friday said it has agreed to provide Sierra Leone a time-bound suspension of debt service due from 1st May to 31st December 2020.
In a statement, the creditor countries said the waiver is done under the under term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20.
“The Government of the Republic of Sierra Leone is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis.
“The Government of the Republic of Sierra Leone is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet,” the Paris Club said.
It said the initiative will also contribute to help the Republic of Sierra Leone to improve debt transparency and debt management.
Paris Club creditors will continue to closely coordinate with other stakeholders in the implementation phase of this initiative, in particular when considering a possible extension of the suspension period, the statement said.