Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — Both 1 and 2
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is correct: The Common Framework for Debt Treatments beyond the DSSI was jointly endorsed by the G20 and the Paris Club in November 2020.
Statement 2 is correct: It was created to coordinate structural debt relief and restructuring for low-income countries (IDA-eligible) facing unsustainable debt vulnerabilities.
The Paris Club (traditional bilateral creditors) and G20 (including emerging bilateral creditors like China) created the Common Framework to unify sovereign debt restructuring.
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