Debt rescheduling / Debt rescheduling agreement
For SERV, debt rescheduling is about restructuring an over-indebted country's obligations. The debtor country and its creditor countries in the Paris Club conclude a special agreement (debt rescheduling agreement) for the country’s specific debts to Switzerland on the basis of a multilateral framework agreement.
Debt rescheduling aims to redistribute the debt burden, ensuring equal participation of each creditor country, and to restructure the external debt of the rescheduling country. Extremely poor debtor countries can also obtain debt reduction agreements such as interest rate reductions or debt cancellation.