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Paris Club

2022 DEC 6

Preliminary   > International Relations   >   Economic Groupings   >   International groupings

Why in news?

  • The Paris Club has proposed a 10-year moratorium on Sri Lankan debt and another 15 years of debt restructuring as a formula to resolve the Sri Lankan debt crisis.

About Paris Club:

  • The Paris Club is an informal group of creditor nations whose objective is to find workable solutions to payment problems faced by debtor nations.
  • The club has 22 permanent members including most of the western European and Scandinavian nations, the United States, the United Kingdom, and Japan.
    • India is not a member of the club
  • The origin of the club is traced to a meeting that happened in Paris between officials from Argentina, which had trouble paying back its debt with a group of lenders in 1956.

PRACTICE QUESTION:

With reference to ‘Paris Club’, consider the following statements:

1. It is an informal group of creditor nations whose objective is to find workable solutions to payment problems faced by debtor nations

2. India is not a member of the group

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer