Paris Club
A group of major creditor countries providing sustainable debt solutions since 1956.
The Paris Club was formed in 1956.[1] Major creditor countries constitute the Paris Club, which works to deliver sustainable resolutions for the debt challenges faced by debtor nations.[2] Argentina's agreement to convene with its public creditors in 1956 marks the date of the Paris Club's first informal gathering.[2]
Quick Facts
- Membership
- 22 member states
- 13 ad hoc member states
- 9 observers
- Languages
- English, French
Facts from the source article.
Key facts and history
The Paris Club has 22 permanent members.[3] A debtor country is invited to negotiate when it has concluded an appropriate programme with the IMF demonstrating inability to meet external debt obligations.[3] From 1956 to the late 1980s, the Paris Club opposed debt forgiveness, instead restructuring, rescheduling, or refinancing under "classic terms"[4] In September 1996, the international financial community recognized that many very poor countries still faced extreme debt difficulties.[5]
The Paris Club adopted the Evian approach in 2003 to provide more flexible debt relief.[6] Under the "Toronto terms" introduced in 1988, the Paris Club consented to its inaugural partial debt reduction, setting the reduction level at 33.33%.[4]
What the cited sources add
A BBC News report states that Argentina reached an agreement with the Paris Club in 2014 to repay overdue debts over five years.[1] The same report notes that a first instalment of at least $1.15bn was due by May 2015.[1] President Cristina Fernandez de Kirchner had pledged to pay the debt in one go in 2008 but was forced to delay due to scarce foreign exchange reserves.[1] The Paris Club stated that the initial payment was a necessary step for normalising financial relationships with Argentina.[1]
The agreement allowed credit agencies to resume doing business with Argentina.[1] Germany was Argentina's biggest Paris Club creditor with about 30% of the debt, followed by Japan with about 25%.[1]
References
- "Argentina in deal with Paris Club to pay $10bn debts", BBC News, 2014-06-21. facts only, no text reused. bbc.com
- Wikipedia, "Paris Club" (CC BY-SA 4.0), which cites: Callaghy, "Paris Club,1956-1980: The Emergence of a Third Bretton Woods Sister", Oxford University Press, 2026 (original not read by us) en.wikipedia.org
- Wikipedia, "Paris Club" (CC BY-SA 4.0), which cites: "Club de Paris" (original not read by us) en.wikipedia.org
- Wikipedia, "Paris Club" (CC BY-SA 4.0), which cites: Chen, "The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance", Cornell University Press, 2024; Chen, "The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance", Cornell University Press, 2024; Chen, "The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance", Cornell University Press, 2024 (we also read that source) en.wikipedia.org
- Wikipedia, "Paris Club" (CC BY-SA 4.0), which cites: Afghanistan, Benin, Bolivia, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Eritrea, Ethiopia, Gambia, (original not read by us) en.wikipedia.org
- Wikipedia, "Paris Club" (CC BY-SA 4.0), which cites: "L'Angevin, Clotilde, « Debt Relief as a Development Tool: The Role of the Paris Club", ECDPM. 2013. GREAT Insights, Volume 2, Issue 1. January 2013" (original not read by us) en.wikipedia.org
Each numbered sentence above was checked against the source it cites before publication. Sentences citing Wikipedia adapt text from the English Wikipedia article Paris Club (contributors), used under CC BY-SA 4.0; this entry is available under the same licence. Other sources were used for facts only; no text or images are copied from them.
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