The governments of Maldives and the United States, on Wednesday, signed an agreement on the G-20 Debt Service Suspension Initiative (DSSI), to temporarily suspend debt-service payments owed to bilateral creditors.
In a ceremony held in Sri Lanka, the Maldivian Ambassador to Sri Lanka Omar Abdul Razzak signed the agreement on behalf of Maldives, while the US Ambassador to Maldives Alaina Teplitz signed on behalf of the US.
According to an official tweet by Teplitz, the debt-relief agreement extends to USD 100,000. She further expressed hopes that international partners will join the US to help countries redirect their resources towards fighting the ongoing COVID-19 pandemic.
Through the #G20 Debt Service Suspension Initiative, the U.S and #Maldives signed a $100,000 debt relief agreement today. I hope our international partners will join us to help countries redirect their resources toward fighting the COVID-19 pandemic. #TogetherWeCan pic.twitter.com/dVasIFXSAi
— Ambassador Teplitz (@USAmbSLM) December 30, 2020
The agreement is expected to directly contribute to Maldives’ ongoing economic recovery efforts, and improve debt transparency and debt management amidst the present economic challenges.
In September this year, a Memorandum of Understanding (MoU) on the Treatment of Debt Services was signed by Minister of Finance Ibrahim Ameer, and the representatives of a number of other creditor countries, including the US.
In addition to the US, China and Japan have also temporarily suspended debt-service payments to Maldives under the G-20 DSSI.
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