OECD Development Assistance Committee (DAC): Donor governments rushed Official Development Assistance (ODA) agreement

Eurodad response to the DAC’s agreement on reporting debt relief as ODA

By Jan Van de Poel

Under the new ODA reporting system donors are rewarded upfront for the risk of their loans not being repaid. The greater the risk profile of the loan, the more that can be reported as ODA. This decision by the DAC will allow additional ODA to be reported when donors need to cancel or reschedule loans to developing countries, as a result of bilateral agreements or as part of international efforts on debt relief. In the coming months, debt relief will be needed to support recovery in countries severely hit by the current pandemic. As a result of the agreement, some donors could be able to meet their commitment to spend 0.7 percent of Gross National Income (GNI) as ODA without mobilising additional resources for countries in need.

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