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?

The correct option is Both 1 and 2.

Explanation:

Statement 1 is correct: The G20 Common Framework (officially the "Common Framework for Debt Treatments beyond the DSSI") is an initiative endorsed by the G20 together with the Paris Club. It was established in November 2020 to coordinate and provide debt treatments for countries facing debt vulnerabilities due to the COVID-19 pandemic.

Statement 2 is correct: The main objective of the framework is to support Low-Income Countries (LICs) that are eligible for the Debt Service Suspension Initiative (DSSI) but face unsustainable debt levels. The framework aims to facilitate timely and orderly debt treatment, ensuring broad creditor participation, including non-Paris Club official bilateral creditors (such as China) and private creditors, to resolve solvency and protracted liquidity problems.