Q4 · UPSC Prelims 2022 · Set A · Current Affairs and GK

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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
D Neither 1 nor 2

Correct answer: (c) Both 1 and 2

Explanation

  1. A

    1 only

    1 only. Both limbs of the Common Framework hold.

  2. B

    2 only

    2 only. It is a G20 + Paris Club debt treatment for LICs.

  3. C

    Both 1 and 2

    Both. Endorsed by G20 with the Paris Club; for low-income countries with unsustainable debt.

  4. D

    Neither 1 nor 2

    Neither. Both statements match the 2020 Common Framework.

Summary. Official key is (c) both. The G20 Common Framework for Debt Treatments (2020) is a G20 initiative with the Paris Club to restructure unsustainable LIC debt on comparable terms, including new official creditors.