Third Update on the Implementation of the Debt Service Suspension Initiative (DSSI) - Progress, Challenges, and Next Steps

Jul 19, 2026

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The IMF and World Bank provide a third update on implementing the COVID-19 Debt Service Suspension Initiative (DSSI) endorsed by G20 finance ministers on April 15, 2020. The initiative suspends debt service payments from May through December 2020 for eligible IDA and UN LDC countries to support crisis response and liquidity. The update highlights participation levels as of July 9, 2020, improved public debt transparency via ongoing website updates, remaining implementation challenges—especially for non-Paris Club creditors—and the planned next steps.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Participation in DSSI

Current status and participation rate as of July 9, 2020

Paris Club actions and non-Paris Club implementation

Country profile and concerns of non-participation

Addressing Implementation Challenges

Terms for non-Paris Club creditors and clarification trends

Potential constraints, arrears, and financing triggers

Public Disclosure Authorized Public Disclosure Authorized WORLD BANK GROUP INTERNATIONAL MONETARY FUND THIRD UPDATE ON THE IMPLEMENTATION OF THE DEBT SERVICE SUSPENSION INITIATIVE (DSSI) July 14, 2020 Prepared by the staffs ofthe World Bank Group and the International Monetary Fund Approved by Marcello Estevão (WB) and Jeromin Zettelmeyer (IMF) Third Update on the Implementation of the Debt Service Suspension Initiative (DSSI) The IMF and the World Bank are actively supporting the implementation of the COVID- 19 Debt Service Suspension Initiative (DSSI) that was endorsed by G20 Finance Ministerson April 15. 1 The DSSI benefits 73 International Development Association (IDA) and United Nations Least Developed (UN LDC) countries by suspending debt service payments from May through December 2020 to facilitate an effective response to the COVID-19 crisis in the world’s poorest countries, providing fast and time-bound liquidity support to a large number of countries. Enhanced transparency of public debt is a central part ofthe DSSI’s objectives. It is important to enable key stakeholders to track progress in the implementation of DSSI and improve debt transparency. The World Bank recently launched the Debt Service Suspension Initiative (DSSI) website ([https://www.worldbank.org/en/topic/debt/brief/covid-](https://www.worldbank.org/en/topic/debt/brief/covid-)[ ](https://www.worldbank.org/en/topic/debt/brief/covid-)[19-debt-service-suspension-initiative](19-debt-service-suspension-initiative)) . The website, which will be updated continuously, publishes information about participation status, current debt sustainability ratings, and potential debt service suspension amounts from DSSI based on the World Bank’s International Debt Statistics (IDS) database.2 This type of broad debt and investment transparency is a high priority for development and recovery from the crisis; and is especially urgent in the context ofCOVID-19. This note provides an update on DSSI implementation status as of July 9, 2020. It discusses (i) progress in DSSI implementation; (ii) remaining implementation challenges; and (iii) the next steps. I. PARTICIPATION IN DSSI As of July 9, 39 DSSI eligible countries had formally requested to join the DSSI as confirmed by G20 creditors and information provided by beneficiary countries.3 This brings the participation rate of the 73 countries eligible for the DSSI to 53 percent. These 39 countries account for an estimated 78.3 percent of potentially eligible official bilateral debt service under the DSSI for the period May to December 2020 based on World Bank estimates. There has been significant progress with DSSI implementation. As of July 9, 2020, the Paris Club had received 34 formal requests and had approved 18 MOUs, including Burkina Faso, Cameroon, Chad, Comoros, Cote D’Ivoire, Dominica, Ethiopia, Grenada, Guinea, Ivory 1The first update on the implementation ofthe DSSI was discussed by the IFA working group on May 28, 2020 and the second update was discussed on June 26, 2020. 2Potential debt service suspension amounts are estimated as debt service on debt outstanding and disbursed as of end 2018 on public and publicly guaranteed debt by official bilateral creditors as compiled in the IDS. 3Participation of these countries in the DSSI has been confirmed both by creditors and participating countries. Coast, Kyrgyzstan, Mali, Mauritania, Myanmar, Nepal, Niger, Pakistan, Republic of Congo and Togo.4 Non-Paris Club creditors, including those which are G20 members, confirmed that as of June 23, 2020, DSSI implementation was in progress for 29 countries and has been implemented by all official bilateral creditors in 1 country.5 Participating countries are diverse, with the greatest share of applicants in Africa, and countries with market access are well represented. Sixty-nine percent of participating countries are in Africa. More than half of participants are assessed to be at high r

FAQs

What is the purpose of the Debt Service Suspension Initiative (DSSI)?

The DSSI aims to support COVID-19 crisis response in the world’s poorest countries by suspending debt service payments for eligible IDA and UN LDC countries, enabling faster and time-bound liquidity support.

How many eligible countries had requested to join the DSSI by July 9, 2020?

By July 9, 2020, 39 DSSI-eligible countries had formally requested to join, bringing the participation rate to 53% of the 73 eligible countries.

What implementation challenges remain, especially for non-Paris Club creditors?

Early participation by some non-Paris Club creditors appeared linked to additional conditions beyond the G20 term sheet, such as limits on new financing or arrears clearance. More recently, there are signs of clarification, including discussion or adaptation of Paris Club MOUs and circulation of the Paris Club MOU by China.

Jul 19, 2026

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