Club de Paris

Meeting of the creditor committee for Chad under the Common Framework

Statement

Meeting of the creditor committee for Chad under the Common Framework for debt treatments beyond the DSSI

January 7, 2022

The creditor committee for Chad formed by China, France, India and Saudi Arabia and co-chaired by France and Saudi Arabia (hereinafter “the creditor committee”) met virtually on December 22, 2021, in presence of the IMF staff and the World Bank staff.

The creditor committee welcomed the approval of the IMF upper credit tranche (UCT) program by the Executive Board on December 10, 2021, for which the June statement of the creditor committee was critical. The approval of the program for Chad by the IMF Executive Board addresses Chad’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to provide quick financial support to Chad to meet its long-term financial needs.

As stated previously, creditor committee members are committed to negotiate with the Republic of Chad terms of a restructuring of their claims, consistent with their national laws and internal procedures, in a timely, orderly and coordinated manner.

The creditor committee reiterated that the Chadian authorities are expected to seek from all private and other official bilateral creditors debt treatments on terms at least as favorable as those being considered by the creditor committee, in line with the comparability of treatment principle. Consequently, creditor committee members stressed the importance for all private and other official bilateral creditors to negotiate in good faith in order to conclude such debt treatments with Chad as soon as possible and noted the commitment of Chad’s main private creditor to engage in good faith discussions for restructuring its claims. The creditor committee remains ready to have an engagement with private creditors, prior to the signature of the MoU with Chad.

Background notes

1. The creditor committee for Chad was formed on April 15, 2021, in application of “Common

Framework for Debt Treatments beyond the DSSI” endorsed by the G20 and the Paris Club in November 2020.

2. The members of the creditor committee for Chad are representatives of the governments of China, France, India and Saudi Arabia. France and Saudi Arabia co-chair the creditor committee.

Observers at the meeting were representatives of the International Monetary Fund and the World Bank Group.

Language English

News Type:

Press release

Slideshow image:

Meeting of the creditors committee for Chad under the Common Framework

Attachments:

statement_creditor_committee_for_chad_070122.pdf

Event date:

Friday, 7 January, 2022 - 15:15

The Republic of Chad benefits from the extension of the DSSI

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Republic of Chad is eligible to benefit from the extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Republic of Chad an extension of the time-bound suspension of debt service due until 31^stDecember 2021.

The Government of the Republic of Chad is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis. The Government of the Republic of Chad is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet and its addendum. This initiative will also contribute to help the Republic of Chad to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to beneficiary countries.

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 member of the Paris Club which participates in the reorganization of the Republic of Chad’s debt is the government of France.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

Credit AdobeStock_191393340 salma

Language English

News Type:

Press release

Slideshow image:

Chad benefits from the extension of the DSSI

Attachments:

20211203_pr_final_extension_dssi_chad.pdf

Event date:

Friday, 3 December, 2021 - 16:00

Dominica benefits from the final extension of the DSSI

In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Commonwealth of Dominica is eligible to benefit from the final extension of the initiative. Therefore, the representatives of the Paris Club Creditor Countries have accepted to provide to the Commonwealth of Dominica an extension of the time-bound suspension of debt service due from 1^st July to 31^stDecember 2021.

The Government of the Commonwealth of Dominica is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis. The Government of the Commonwealth of Dominica is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet and its addendum. This initiative will also contribute to help the Commonwealth of Dominica to improve debt transparency and debt management.

Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI and its extension, so as to provide maximum support to beneficiary countries.

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 which participate in the reorganization of the Commonwealth of Dominica’s debt are the governments of France and the United Kingdom.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, the Republic of Korea, the Russian Federation, Spain, Sweden, Switzerland, and the United States of America.

Credit AdobeStock 85288129 ingalin

Language English

News Type:

Press release

Slideshow image:

Dominica benefits from the final extension of the DSSI

Attachments:

20210728_pr_final_extension_dssi_dominica.pdf

Event date:

Wednesday, 28 July, 2021 - 18:45

Cuba's debt restructuring

THE GROUP OF CREDITORS OF CUBA AND

THE GOUVERNEMENT OF THE REPUBLIC OF CUBA

AGREE TO AMEND THE TERMS OF THE PREVIOUS CONSOLIDATION AGREEMENTS

The representatives of the Group of Creditors of Cuba and of the Government of the Republic of Cuba met in Paris on 16 and 17 January 2025 to amend the terms of the agreements dated 10 June 2021 and 12 December 2015.

During the meeting, the delegation of the Republic of Cuba described its country’s complex economic and financial situation and its underlying factors, and the main policies and measures implemented and to be implemented for a continued execution of its development plan.

This rescheduling provides the Republic of Cuba with better conditions to deal with its economic and financial difficulties in the next few years. It will also preserve the relationship with the member countries of the Group of Creditors of Cuba through the full implementation of previous consolidation agreements.

Background note:

The Group of Creditors of Cuba includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

Credit Photo ©Delphotostock

Language English

News Type:

Press release

Slideshow image:

Attachments:

20250117-_press_release_cuba.pdf

Event date:

Friday, 17 January, 2025 - 17:15

Annual meeting of the Paris Club with representatives of the private sector

OFFICIAL AND PRIVATE CREDITORS DISCUSSED ONGOING DEBT RESTRUCTURING PROCESSES, COORDINATION BETWEEN THE PUBLIC AND THE PRIVATE SECTOR
AND MOBILIZING PRIVATE CAPITAL IN DEVELOPING COUNTRIES

The 21th Annual Meeting of the Paris Club and the Institute of International Finance (IIF) was held on 7 November 2024 at the French Ministry of Economy, Finance and Industry. Delegates discussed a range of issues including ongoing debt restructuring processes in countries eligible and not eligible for the G20-Paris Club Common Framework for debt treatment and key topics, including the use of state-contingent instruments in debt restructuring, comparability of treatment, and enhancing coordination between public and private creditors. Participants also considered Multilateral Development Bank’s incentives and tools to catalyze private financing, coordination between public and private financing in a context of liquidity challenges and enhancing the investment environment for transition financing in developing countries.

The meeting convened all 23 Paris Club members including South Africa as prospective member, as well as three ad hoc participants, China, India and Hungary. It also gathered representatives from the IMF, the World Bank, and more than sixty organizations from the private sector. Since 2001, this annual meeting has provided a unique opportunity to foster dialogue and cooperation among all creditors, both official and private, while also providing insights into recent developments and longer-term trends in the field of sovereign debt policy.

More than three years after its implementation, the Common framework has produced concrete results in enhancing creditor coordination in an increasingly complex debt landscape, but progress is still needed to reduce delays in debt treatments. At the same time, new challenges have gained prominence with increasing financing pressures for many developing countries, highlighting the need to mobilize both public and private financing in these countries.

In light of this context, participants engaged in discussions on how to facilitate orderly and timely sovereign debt restructurings to help restore debt sustainability for debtor countries, notably through enhanced creditor coordination and information sharing. Participants also discussed best practices in the use and design of state contingent instruments in debt restructuring, as well as the assessment of comparability of treatment when using such contingent-instruments. Additionally, participants explored ways to build resilience and mobilize private capital in developing countries, including coordination across public and private financing as well as the use of credit enhancements to crowd in new financing.

Credit Photo @Emily Taylor

Language English

News Type:

Press release

Slideshow image:

Annual meeting of the Paris Club with representatives of the private sector

Attachments:

2024_11_12_press_release_pc_iif_en-vf.pdf

Event date:

Tuesday, 12 November, 2024 - 11:30

Suriname-Implementation of the second phase of the debt treatment by the Paris Club

THE PARIS CLUB IMPLEMENTS THE SECOND PHASE OF

THE DEBT TREATMENT TO THE REPUBLIC OF SURINAME

Paris Club creditors agreed on 8 October 2024 with the Republic of Suriname on the conditions of the second phase of the restructuring of its external public debt, in the form of an Amendment to the Agreed Minutes on the Consolidation of the Debt of the Republic of Suriname of 22 June 2022.

Based on the assessment that the Republic of Suriname has fulfilled all its commitments under the 2022 Minutes, notably the comparability of treatment, and has maintained sound macroeconomic policies consistent with long-term debt sustainability, Paris Club creditors decided to reschedule all remaining outstanding principal amounts falling due starting on 1 January 2025 (stock treatment). As the 2024 IMF assessment of the macroeconomic situation is consistent with the previous projections, the repayment schedule is now, as planned, 17 years (including a 4-year grace period) for ODA claims and 12 years (including a 5-year grace period) for NODA claims.

The Government of the Republic of Suriname and the Participating Creditor Countries also committed in the 2022 Minutes to review the latest developments of the macroeconomic situation of the Republic of Suriname, in particular the existence of the prospects for oil revenues to adjust the second phase of the treatment. Those terms will be adjusted to ensure comparability of treatment with regards to other external creditors once the Value Recovery Instrument of the Bondholders starts paying out.

The Republic of Suriname has committed to seek debt treatments at least as favourable from all other bilateral and external commercial creditors.

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 which participated in the reorganization were representatives of the Governments of France, Israel, Italy and the Netherlands.

Observers at the meeting were representatives of the Governments of Denmark, Germany, Ireland, Japan, Spain, Switzerland, the United States of America, as well as of the International Monetary Fund (IMF) and the World Bank (WB).

3. The delegation of the Republic of Suriname was headed by H.E. Kermechend RAGHOEBARSING, Minister of Finance and Planning. The meeting was chaired by Mr. William ROOS, Co Chairman of the Paris Club, Assistant Secretary at the Directorate-General of the Treasury of the French Ministry of Economy, Finance and Industry.

Technical notes

1. The Republic of Suriname’s economic program is supported by an Extended Fund Facility (EFF) approved by the Executive Board of the International Monetary Fund (IMF) on 22 December 2021.

2. The total stock of the Republic of Suriname’s external debt was estimated as of 31 December 2023 to be US$ 2,694 million and the stock of debt owed to Paris Club creditors was estimated to be US$ 88 million (source: IMF).

Credit Photo: AdobeStock@Matyas Rehak

Language English

News Type:

Press release

Slideshow image:

Suriname-Implementation of the second phase of the debt treatment by the Paris Club

Attachments:

20221008_pr_suriname_vf.pdf

Event date:

Thursday, 10 October, 2024 - 09:15

Publication of the 2023 annual report of the Paris Club

The Paris Club is pleased to release its annual report for 2023, which highlights its main contributions and outcomes of the past year. This exercise is part of the Paris Club's commitment to greater transparency in its actions and work.

First, the report provides an overview of the current international sovereign debt environment. The successive shocks which have hit the global economy in recent years have continued to reverberate in 2023. However, the first few months of 2024 have also seen more positive developments, with a return of Eurobond issuances in Sub-Saharan Africa for the first time since April 2022, low-income country debt levels stabilizing, and a possible inflection point reached in the global interest rate cycle as markets expect rates to begin falling. The perspective of another major debt crisis is slowly receding but vigilance remains high – at a time when many borrowers have significant external repayments falling due, limited fiscal space and large investment needs.

Second, the report presents the ongoing cases from different perspectives – borrowers from Zambia and Ghana, Paris Club secretariat, Paris Club creditors (Japan and Italy in conversation with Brad Setser) and G20 creditors (China) and Paris Club Chair. It takes stock of the lessons learnt over the past four years and suggests avenues for improvement. The past few months has been productive for the official bilateral creditors and borrowers’ community, in light of the debt treatments agreed with Zambia, Ghana and Sri Lanka. Given the diversification of the sovereign debt landscape over the last few decades, this section reflects the strengthened coordination between the Paris Club and other creditors, in particular G20 non-Paris Club members, with whom the Paris Club has committed to implementing the Common Framework.

Finally, given its role in designing and negotiating debt treatments, the Paris Club is at the forefront of thinking and discussions on the major issues driving the international sovereign debt community. This third and final part of the annual report aims to illustrate how the Paris Club contributes to these debates on comparability of treatment, restructuring of domestic debts, the nexus between sovereign debt and climate vulnerability, data transparency, countries facing temporary liquidity problems, and more. This section presents various discussions the Paris Club participates to, including meetings of the Institute of International Finance (IIF); the Global Sovereign Debt Roundtable (GSDR) created at the initiative of the G20 Presidency, the IMF and the World Bank; the Paris Club's Paris Forum which addresses the most topical issues of the moment. The report also presents a contribution by the Finance Development Lab, whose first president and founder Professor Daniel Cohen passed away in August 2023.

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 : @PBagein

Language English

News Type:

Press release

Slideshow image:

Attachments:

20240701-_pr_annual_report_2023.pdf

web-ra-club-paris-2023.pdf

Event date:

Monday, 1 July, 2024 - 15:15

The Paris Club releases comprehensive data on its claims as of 31 December 2023

Since 2008, the Paris Club has published annually the amount of its claims on foreign countries.

These claims are held either by the Paris Club creditors directly, or through their appropriate institutions (including export credit or development agencies) on behalf of the member states.

The table published on the Paris Club website presents the total amount of claims as of 31 December 2023 held by Paris Club members on each borrower country, with a split into Official Development Assistance (ODA) claims and non-Official Development Assistance (NODA) claims.

At this date, the total of claims held by the Paris Club, excluding late interest, amounts to USD 334.2 billion of which USD 195.3 billion are ODA claims and USD 138.9 billion are NODA claims.

Some amounts on which Paris Club creditors decided to provide debt relief may still appear in this table for technical reasons, especially delays in the signing of bilateral agreements implementing Paris Club agreements.

Language English

News Type:

Press release

Slideshow image:

Attachments:

parisclub_claims_as_of_31_12_2023.pdf

Event date:

Monday, 1 July, 2024 - 12:30

Paris Forum: Successful debt treatments for future investment

PARIS FORUM: THE 11^TH ANNUAL CONFERENCE OF THE PARIS CLUB ADRESSES SUCESSFUL DEBT TREATMENTS FOR FUTURE INVESTMENT

The 11^th edition of the Paris Club annual meeting, known as the Paris Forum, took place on 26 June 2024, at the French Ministry for Economy, Finance and Industrial and Digital Sovereignty, with the support of the Brazilian Presidency of the G20.

The Forum is aimed at facilitating open discussions on debt challenges and share potential solutions to prevent and address debt crises in developing countries. This edition, titled Successful debt treatments for future investment, emphasized the link between concluding a debt treatment, which helps to restore macroeconomic stability, and the conditions for growth and development via new investment. It was an opportunity to reflect on the state of global sovereign debt issues, and the challenges faced by developing countries that have restructured their debt to be able to invest again in their future, to meet the challenges of sustainable development and continue the fight against climate change. A technical workshop has also been dedicated to the key principle of Comparability Treatment, which has kept creditors busy since 2023. This issue of Comparability of treatment is key to ensure a fair burden-sharing of efforts between public and private creditors.

The Paris Forum is a unique platform for exchanges among creditors (both public and private, Paris Club and other official creditors), borrowing countries, international institutions, researchers and NGOs on sovereign debt. The event also saw the participation of around twenty borrowing countries, represented by a dozen ministers, as well as academics, NGOs, and representatives from around thirty private sector organisations, mainly banks and asset managers exposed in frontier markets.

The Paris Club remains steadfast in its commitment to promoting sustainable debt practices and coordinated solutions in cases where debt treatments become necessary. This commitment will persist within various relevant fora, primarily within creditor committees, which are responsible for negotiating restructurings. As part of its unwavering commitment, the Paris Club will also continue to actively contribute to the work of the G20's International Financial Architecture Working Group.

In the margins of the Forum, the Co-chairs of the Committee of Public Creditors for Sri Lanka initiated the signature of the country's debt restructuring agreement, alongside China's Exim Bank own agreement with Sri Lanka, in support of the authorities' efforts.

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.

3. France, India and Japan co-chair the Committee of Public Creditors for Sri Lanka. The members of the Paris Club which are part of the Committee are Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, the United States of America. The committee includes India and Hungary, in addition to the Paris Club creditors.

Paris Forum, 26 June 2024

Credit @PBagein

Language English

News Type:

Press release

Slideshow image:

Attachments:

20240628-_pr_paris_forum_2024.pdf

20240625-_paris_forum_2024_final_agenda.pdf

list_of_participants-parisforum_26_06_2024-vf.pdf

Event date:

Friday, 28 June, 2024 - 17:15

Agreement on a debt restructuring between the Official Creditor Committee and Sri Lanka

STATEMENT

AGREEMENT ON A MEMORANDUM OF UNDERSTANDING BETWEEN THE OFFICIAL CREDITOR COMMITTEE AND SRI LANKA ON A DEBT RESTRUCTURING

June 26, 2024

Since the Official Creditor Committee (OCC) and Sri Lanka agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF on November 23, 2023, the OCC and Sri Lanka furthered discussions in order to finalize the agreement in a Memorandum of Understanding (MoU).

The OCC also continued to engage extensively with the Sri Lankan authorities, the IMF and the World Bank, as well as China and Sri Lanka’s private creditors in order to ensure comparability of treatment.

On June 26, 2024, the OCC and Sri Lanka finalized the MoU, based on the main parameters of the debt treatment agreed in November 2023. The progress on the MoU had enabled the IMF staff to present to the IMF Executive Board the second review of Sri Lanka’s EFF arrangement and thus open the way for approval of the third disbursement under the arrangement.

The OCC commends the Sri Lankan authorities for their continuous efforts in implementing the reforms necessary for their country’s return to a sustainable path.

The OCC now looks forward to receiving from Sri Lanka all information necessary for the OCC to ensure comparability of treatment. The OCC also expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC.

These engagements will ensure that the overall debt treatment granted to Sri Lanka is consistent with the IMF program parameters.

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. The members of the Paris Club which are part of the Official Creditor Committee are representatives of countries with eligible claims on Sri Lanka: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, the United States of America.

2. Representatives of the International Monetary Fund, the World Bank and the Asian Development Bank attended the OCC meetings as observers. China, Saudi Arabia and Iran attended the OCC preparatory meetings.

3. The Official Creditor Committee for Sri Lanka was formally formed by 17 countries on May 9, 2022. It is co-chaired by India, Japan and France as chair of the Paris Club. The committee includes India and Hungary, in addition to the Paris Club creditors mentioned in note 1.

Language English

News Type:

Press release

Slideshow image:

Attachments:

2024-06-26-statement_occ_sri_lanka-vf.pdf

Event date:

Wednesday, 26 June, 2024 - 17:00

You are here

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

News Type:

Slideshow image:

Attachments:

Event date:

Pages

Newsletter