How the Paris Club works and has evolved over the past 70 years

THE PARIS CLUB IN THREE VIDEOS

30 June 2023

HOW THE PARIS CLUB WORKS AND HAS EVOLVED OVER THE PAST 70 YEARS

For nearly 70 years, the Paris Club has played a crucial role in supporting countries facing challenges in repaying their debt. These informative videos shed light on the invaluable contributions of this informal group of sovereign creditors within the international financial architecture.

The first video provides a comprehensive overview of how the Paris Club functions, emphasizing its primary missions and the guiding principles that underpin its operations. You can watch it at: https://youtu.be/vVwkm9Sx8o8.

In the second video, the focus shifts towards three pivotal moments in the Club’s recent history. It explores how the landscape of sovereign debt evolved following the implementation of the Heavily Indebted Poor Countries (HIPC) initiative, ultimately leading to the establishment of the Common Framework between the Paris Club and the G20 in 2020: https://youtu.be/O5x8Yclq3FE.

Lastly, the third video delves into the intricacies of a debt treatment negotiated by the Paris Club and implemented by its member creditors: https://youtu.be/s1_RA-zIZF4.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.

2. The members of the Paris Club are the governments of Germany, Australia, Austria, Belgium, Brazil, Canada, Denmark, Spain, the United States of America, the Russian Federation, Finland, France, Ireland, Israel, Italy, Japan, Norway, the Netherlands, the Republic of Korea, the United Kingdom, Sweden, and Switzerland. Additionally, South Africa has been a prospective member since 2022.