What is the Paris Club?

About Paris Club:

• The Paris club has also called upon the Global north and south to take a similar haircut in restructuring of Sri Lankan debt. So far no official proposal has been made by Paris club to China or India.
• 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 Paris Club has 22 permanent members, including most of the western European and Scandinavian nations, the United States, the United Kingdom, and Japan.
• The group is organized around the principles that each debtor nation be treated case by case, with consensus, conditionality, solidarity, and comparability of treatment.
• The Paris Club stresses the informal nature of its existence. As an informal group, it has no official statutes and no formal inception date, although its first meeting with a debtor nation was in 1956, with Argentina.

 

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Q1) What are Creditor nations?

Creditor nations are those that lend more money to the world than they borrow from it. 

Source: All India Radio