2. CONTANT
1.What is Paris Club?
2.Members
3.Paris club born in 1956
⢠Organization
⢠Paris club terms
⢠Paris club Forum
1.Paris club meetings
2.Paris club- main principals
3.Paris club observers
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3. What is Paris Club?
âThe Paris Club is an informal group of
official creditors whose role is to find
coordinated and sustainable solutions
to the payment difficulties experienced
by debtor countries.â
âAs 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.â
Facilitate with:
⢠Debt rescheduling
⢠Concessional
rescheduling
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4. Members:
The Club consists of twenty-two permanent members. Three new
members are Russia, Brazil and South Korea.
Australia
Austria
Belgium
Brazil
Canada
Denmark
Finland
France
Germany
Ireland
Israel
Italy
Japan
Netherlands
Norway
Russia
South Korea
Spain
Sweden
Switzerland
United Kingdom
UnitedStates
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6. Born in 1956:
when the first negotiation between Argentina and its public
creditors took place in Paris.
Organization:
Leaders000000000000
⢠Chairperson Odile Renaud Basso
⢠Co-Chairperson Guillaume Chabert
⢠Vice-Chairperson Cyril Rousseau
⢠Secretary General Geoffrey Cailloux
Terms:
Classic Terms: the standard terms available to any country eligible for Paris
Club relief.
Houston Terms: for highly-indebted lower to middle-income countries.
Naples Terms: for highly-indebted poor countries.
Cologne Terms: for countries eligible for the IMF and World Bankâs Highly
Indebted Poor Countries Initiative (HIPC).
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7. Paris Forum:
A forum for frank and open debate on the global evolutions in terms of
sovereign financing and on the prevention and resolution of sovereign debt
crises.
ď 2013 Paris Forum: held on October 29, 2013 in Paris, and was jointly
organized by the Paris Club and the Russian Presidency
ď 2014 Paris Forum: held on November 20, 2014 in Paris, and was jointly
organized by the Paris Club and the Australian Presidency
ď 2015 Paris Forum: held on November 20, 2015 in Paris, and was jointly
organized by the Paris Club and the Turkish Presidency
ď 2016 Paris Forum: held on November 29, 2016 in Paris, and was
organized by the Paris Club.
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8. Meetings:
ď Generally meet 10 times per year, except Feb and Aug.
ď Each session includes a one-day meeting called a âTour d'Horizonâ
Negotiations:
o A debtor country is invited to a negotiation meeting with its Paris Club
creditors
o Members participate as observers or creditors.
Steps in a negotiation:
o Few welcome words from the chairman
o A statement by the minister of the debtor country
o This statement is followed by statements by the IMF and the World Bank
o Representatives of creditor countries may then request additional
information or clarification
o After responding to any questions, the delegation of the debtor country then
leaves the main room.
o Creditors then discuss among themselves a proposed debt treatment.
o the Agreed Minutes formalizes the accord in writing in French and in English.
o Signing process.
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9. Paris Club â main principles:
ď Solidarity
ď Consensus
ď Sharing Information
ď Case by Case
ď Conditionality
ď Comparability of Treatment
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10. Paris Club observers:
Observers are present during a negotiation meeting but are not active participants in
the negotiation itself. They do not sign the agreement that formalizes the negotiationâs
result.
There are three types of observers:
1. Representatives of International Institutions:
⢠International Monetary Fund (IMF)
⢠World Bank
⢠Organization for Economic Co-operation and Development (OECD)
⢠United Nations Conference on Trade and Development (UNCTAD)
⢠European Commission
⢠African Development Bank
⢠Asian Development Bank
⢠European Bank for Reconstruction and Development (EBRD)
⢠Inter-American Development Bank (IADB)
2. Members with no Claims
These are representatives of Paris Club permanent members that have no claims
regarding debt treatment, for example who do not owed money by the debtor nation
but nevertheless wish to attend the meeting.
3. Non Member Creditors
Representatives from creditor nations that are not Paris Club members. They only
attend if the debtor country and permanent members agree.
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