Remarks at a UN Financing for Development Forum Panel on Private Sector Debt

Jason Mack
Counselor for Economic and Social Affairs
New York, New York
April 14, 2021


Thank you, Mr. Plant and panelists, for today’s interesting discussion.

The United States believes the Debt Service Suspension Initiative has and continues to provide emergency liquidity relief, but a more structural and tailored approach will be necessary for countries that need additional assistance, including possible debt reduction. This includes working closely with the private sector to address debt sustainability.

As part of this, the G20 and Paris Club have developed and endorsed a Common Framework for Debt Treatments beyond the DSSI. The Common Framework will allow low-income countries to benefit from a more efficient, transparent, and responsive approach to seeking debt treatment.

The Common Framework, which includes both Paris Club and non-Paris Club G20 creditors, incorporates long-standing Paris Club principles and best practices into the debt treatment process which requires comparable debt relief from creditors, includes private sector lenders, and secures greater debt transparency. This is a milestone in sovereign debt resolution.

We strongly urge all creditors to fully and transparently implement the Common Framework to avoid unnecessary delays that can prolong debt overhangs and exacerbate growth shocks.

We also continue to encourage private sector financial institutions to do their part in the COVID-19 response by providing debt relief when and where possible. We need to approach the private sector as partners in this to work to ensure continued market access.

Thank you.