The Common Framework for Debt Treatments beyond the DSSI was endorsed by G20 finance ministers and the Paris Club in November 2020 as a successor approach to the pandemic-era Debt Service Suspension Initiative (DSSI), which only postponed payments. Where DSSI offered temporary relief, the Common Framework is designed to deliver durable restructurings — including, where needed, reductions in net present value — for countries with unsustainable debt.
Its central innovation is bringing non–Paris Club official bilateral creditors, most importantly China, India, and Saudi Arabia, into a single coordination process alongside traditional Paris Club members. Debtor governments must request a treatment, agree an IMF-supported program, and then negotiate with an Official Creditor Committee co-chaired by a Paris Club member and a major non–Paris Club creditor. A comparability of treatment clause requires the debtor to seek equivalent terms from private bondholders and other commercial creditors, so that official creditors do not subsidise private ones.
Eligibility is limited to the 73 countries that were covered by the DSSI — broadly IDA-eligible and least-developed economies. Middle-income distressed borrowers such as Sri Lanka and Suriname have therefore been handled outside the framework, though using similar coordination logic.
Uptake has been slow and contested. Chad reached an agreement in November 2022 without nominal debt reduction, drawing criticism. Zambia concluded a memorandum of understanding with official creditors in 2023 and a bondholder deal in 2024 after prolonged disputes over comparability with China Exim Bank. Ghana and Ethiopia subsequently entered the process. Critics — including the IMF, World Bank, and academics such as those at the CGD — point to delays, opaque Chinese lending, and the absence of an automatic debt-service standstill during negotiations. Reform discussions have focused on speeding timelines, clarifying comparability, and improving creditor information sharing through the Global Sovereign Debt Roundtable launched in 2023.
Example
In November 2022, Chad became the first country to complete a debt treatment under the Common Framework, reaching an agreement with creditors including France, Saudi Arabia, and China Exim Bank.
Frequently asked questions
The 73 low-income countries that were eligible for the DSSI, largely IDA-eligible and least-developed economies. Middle-income distressed borrowers are excluded.
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