Publication of the 2024 annual report of the Paris Club

The Paris Club publishes its annual report for 2024. It sets out the Paris Club’s action over the past year and the results of the Paris Club’s action. The report reflects the Paris Club’s commitment to greater transparency – by clarifying certain concepts and making public the outstanding amounts of Paris Club creditors by borrower country. The annual report also provides a platform for our partners: borrowing countries, the World Bank and the IMF, other bilateral creditors and private sector representatives.

This year, the report opens with an overview of the current international sovereign debt environment. Although sovereign debt vulnerabilities remain concerning, they have sightly decreased and solvency risks have been contained. However, a number of countries are experiencing significant liquidity tensions.

Then, the report reviews the progress made in the restructuring cases under the Common Framework: conclusion of the agreement with Ghana and the first steps concluded with Ethiopia. Various stakeholders involved in debt restructuring present their views on the results achieved, as well as the limits and the areas for improvement. The report also presents the restructuring carried out outside the Common Framework, which are the ones of Sri Lanka and Suriname.  

The report highlights the almost total cancellation of Somalia’s debt by the Paris Club creditors, after reaching the completion point of the Heavily Indebted Poor Countries initiative (HIPC). This treatment is the opportunity for the Paris Club to present its assessment of the HIPC initiative, which has been a core part of the Club’s action for almost three decades.

The final part of the report looks at the positions of the Paris Club in the debates and reflections that animate the international sovereign debt community. Brazil reports on the results achieved under its G20 presidency, through the publication of several notes on the lessons learned from the Common Framework on debt swaps and Climate Resilient Debt Clauses (CRDCs). The Paris Club Secretariat also present the main takeaways of the 2024 Paris Forum, as well as the conclusions of a workshop on comparability of treatment regarding Value-Recovery Instruments (VRIs).

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

Credit Photo : @Patrick Bagein