The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

IIF and Paris Club to collaborate on debt relief, but S&P warns on default

Private creditors and the Paris Club have agreed to collaborate on a debt standstill for low-income countries, but the process must be handled with care to avoid being more punitive than helpful.


Private and official creditors to the world’s poorest countries agreed to collaborate on a debt standstill beginning on May 1. Agreeing to collaborate is only the first step, though. Now they must work out how to implement the standstill.

The Debt Service Suspension Initiative (DSSI) applies to 73 countries – the majority in Africa. The 77 lowest income countries have outstanding debt payments amounting to $140 billion, though Eritrea, Sudan, Syria and Zimbabwe are ineligible as they are currently in arrears with either the IMF or the World Bank. 

Little detail was offered on how the process would work, but the Institute of International Finance (IIF) and Paris Club proposed that it should be granted at the specific request of borrowing countries. Participation for private sector creditors will be voluntary, the IIF says.   

“Everyone would like to help, there is a lot of willingness but [the IIF] is trying to figure out how this can be done,” says a source with knowledge of the conversations.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?