Paris Club creditor nations are proposing 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 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.
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