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The memorandum, which the UN Development Programme will share with Pakistan's government this week, states that the country's creditors should consider debt relief so that policymakers can prioritise financing its disaster response over loan repayment, the newspaper said.
Rajapaksa said the government has to make a $500 billion debt payment in January 2022 and another billion dollars by June.
Debt traps are not an imaginary situation. If you are stuck in one, it is high time you take steps in the right direction to come out of it.
The IMF estimated on Tuesday that Greece's economy would grow by 2.5 percent this year and 3.7 percent in 2016 — forecasts that bemused some analysts aware of the country's hefty debt burden and deadlocked talk with international creditors.
A senior executive at real estate developer Housing Development & Infrastructure Ltd said on Thursday the company was "very comfortable" with its debt repayments, after its shares fell as much as 22 percent.
Gold prices have soared to record highs this year on concerns over the euro zone debt crisis, and the metal could be set for another leg higher if the world's biggest economy, the United States, also starts to struggle with its debt repayments.