Paris Club

The Paris Club, an informal group of creditor nations, will provide financial assurances to the International Monetary Fund on Sri Lanka’s debt. This is a key step needed to unlock a $2.9 billion bailout by the International Monetary Fund (IMF).

About the ‘Paris Club’ –

• The Paris Club is a group of mostly western creditor countries that grew from a 1956 meeting in which Argentina agreed to meet its public creditors in Paris.
• Objective – To find sustainable debt-relief solutions for countries that are unable to repay their bilateral loans.
• It is a forum where official creditors meet to solve payment difficulties faced by debtor countries.
• Member Countries – Australia, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Japan, Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, the United Kingdom and the United States.
• All 22 are members of the group are also part of the Organisation for Economic Co-operation and Development (OECD). OECD is a group of 37 member countries that discuss and develop economic and social policy.