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