BRUSSELS - European Union countries are in favour of extending a G20 joint framework for sovereign debt restructurings to middle-income countries, according to an EU document laying out the bloc's position for a Group of 20 finance ministers meeting next week.

G20 countries agreed in 2020 on a common framework (CF) for debt restructurings to streamline the process of coordinating the restructuring of low-income countries' debts after the pandemic.

So far Chad, Ethiopia, Ghana and Zambia have sought debt relief under the framework, but progress has been slow with some western countries blaming China of dragging its feet. Only Chad has successfully reached a debt relief agreement.

While 70 or so of the poorest countries are eligible to seek relief under the framework, a growing number of middle-income countries are also struggling with their debt burdens.

"We support exploring a possible extension of the CF to middle-income countries facing debt vulnerabilities," said the EU's terms of reference for the G20 finance ministers meeting on Feb. 24-25 in Bangalore, India.

The EU document also called on the G20, the International Monetary Fund, World Bank and Paris club of creditor governments to review the framework's functioning based on the first cases and offer greater clarity to debtor countries.

(Reporting by Jan Strupczewski; writing by Leigh Thomas; editing by Christina Fincher)