The Paris Club (French: Club de Paris) is a group of officials from major creditor countries whose role is to find co-ordinated and sustainable solutions to the payment difficulties experienced by debtor countries. As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment.
Paris Club creditors provide debt treatments to debtor countries in the form of rescheduling, which is debt relief by postponement or, in the case of concessional rescheduling, reduction in debt service obligations during a defined period (flow treatment) or as of a set date (stock treatment).The Paris Club was created gradually from 1956, when the first negotiation between Argentina and its public creditors took place in Paris. The Paris Club treats public claims (that is to say, those due by governments of debtor countries and by the private sector), guaranteed by the public sector to Paris Club members. A similar process occurs for public debt held by private creditors in the London Club, which was organized in 1970 on the model of the Paris Club as an informal group of commercial banks meet to renegotiate the debt they hold on sovereign debtors.
Creditor countries meet ten times a year in Paris for Tour d'Horizon and negotiating sessions. To facilitate Paris Club operations, the French Treasury provides a small secretariat, and a senior official of the French Treasury is appointed chairman.Since 1956, the Paris Club has signed 433 agreements with 90 countries covering over US$583 billion.
2004Nov, 21
The Paris Club agrees to write off 80% (up to $100 billion) of Iraq's external debt.
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Events on 2004
- 1Jan
Pervez Musharraf
In a vote of confidence, General Pervez Musharraf wins 658 out of 1,170 votes in the Electoral College of Pakistan, and according to Article 41(8) of the Constitution of Pakistan, is "deemed to be elected" to the office of President until October 2007. - 2Feb
Roger Federer
Swiss tennis player Roger Federer becomes the No. 1 ranked men's singles player, a position he will hold for a record 237 weeks. - 1May
European Union
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia join the European Union, celebrated at the residence of the Irish President in Dublin. - 26May
Oklahoma City bombing
United States Army veteran Terry Nichols is found guilty of 161 state murder charges for helping carry out the Oklahoma City bombing. - 3Aug
September 11 attacks
The pedestal of the Statue of Liberty reopens after being closed since the September 11 attacks.