Maldives, US sign agreement on G-20 debt suspension initiative

Maldives and Unites States have signed an agreement on the G-20 debt service suspension initiative, agreeing to temporarily suspend debt service payments owed by Maldives to the US.

The agreement was signed by the Maldivian High Commissioner to Sri Lanka Omar Abdul Razzak and the US Ambassador to Maldives Alaina Teplitz in Colombo on Wednesday.

Maldivian Foreign Ministry has stated that the agreement will contribute directly to Maldives’ ongoing economic recovery efforts, and will improve debt transparency and debt management amid the present economic challenges.

US Ambassador Telpiz has stated the agreement will allow a USD 100,000 debt relief.

Exceptional honor to sign for #Maldives #G20 Debt Service Suspension Initiative with #US govt. Highly appreciate and reiterate my esteemed colleague HE @USAmbSLM’s hope for international partners to readjust their resources to assist us overcome pandemic set-backs #TogetherWeCan https://t.co/whzFmSje8M

— OMAR (@OmarARazak) December 30, 2020

Maldivian Finance Minister Ibrahim Ameer signed a Memorandum of Understanding on the treatment of debt services and a number of creditor countries including the US back in September.

Similar agreements on the G-20 debt suspension initiative have been signed with Japan and China so far.