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?
A
1 only
B
2 only
C
Both 1 and 2
Correct Answer
D
Neither 1 nor 2
Explanation
The correct option is (c) because the G20 Common Framework was jointly launched by the G20 and the Paris Club in 2020 to provide a coordinated debt restructuring process for 73 low-income countries facing unsustainable debt. Option (b) is the most tempting incorrect choice if a candidate is unaware that the initiative specifically involves the Paris Club to ensure private and bilateral creditor participation. The core concept being tested is the international financial architecture and global mechanisms for managing sovereign debt distress in vulnerable economies.
International Economic CooperationG20 Common Framework for Debt TreatmentG20 Common FrameworkinitiativeG20Paris ClubLow Income Countriesunsustainable debt