Club de Paris

The Paris Club releases comprehensive data on its claims as of 31 December 2015

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

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

The table contains comprehensive data that cover the full range of claims held on sovereign countries and public entities by Paris Club members, including its 21st and newest member the Republic of Korea, and one ad hoc participant, Brazil, who took part in this global data call. It therefore encompasses very different categories of debtors, roughly half of which have always fully serviced their debt owed to Paris Club full and ad hoc members. Ninety of the debtor countries listed in the table have negotiated an agreement with the Paris Club at some time in the past. Most of the countries listed below are very unlikely to apply for debt relief in the future given their current macroeconomic prospects.

The table published on the Paris Club website shows the total amount of claims as of
31 December 2015 held by Paris Club members on each debtor country, with a split between Official Development Assistance (ODA) claims and non-Official Development Assistance (NODA) claims. The stock of claims is aggregated at each debtor country level.

The total of Paris Club claims, excluding late interest, amounts to USD 310.95 billion of which USD 149.95 billion represents ODA claims and USD 161 billion represents 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.

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News Type:

Press release

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2015a.pdf

Event date:

Wednesday, 29 June, 2016 - 12:00

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The Paris Club welcomes the Republic of Korea's decision to become its 21st member

The Paris Club welcomes the Republic of Korea’s decision to join as its twenty-first member, and will now initiate its accession process.

The accession of Korea to the Paris Club will come as a recognition of its growing role as a sovereign creditor, and of its involvement in the discussions of the Paris Club, which provides a multilateral framework that helps creditors recover their claims in arrears and allows for an efficient and timely resolution of debt crises.

As a member, Korea will be able to better influence the international financial agenda and to have more say in future Paris Club negotiations of sovereign debt restructurings. Korea’s integration will be based upon the full commitment to the Paris Club’s six principles, designed as a framework for fostering open and constructive dialogue among sovereign creditors.

The Paris Club's unique experience and track record of 433 successful negotiations with 90 countries, along with its openness and flexibility, will allow it to continue playing a pivotal role in the international financial system as the world’s only organized forum to achieve coordination amongst official bilateral creditors in restructuring sovereign debt.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments from major creditor countries.

2. The members of the Paris Club are representatives of the governments of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Ireland, Israel, Japan, the Netherlands, Norway, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

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Article

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Attachments:

pr20160606accession_korea.pdf

Event date:

Monday, 6 June, 2016 - 12:45

Paris Forum Workshop - Spring Meetings

“Debt sustainability in developing economies: new policies and new tools to address an old issue” - Washington DC

The objective of the “Paris Forum” events is to foster frank and open discussions between creditor and debtor countries, on topics pertaining to official financing and to sovereign debt, including sovereign debt crisis prevention and resolution. It is primarily a forum of collective interest to promote exchange of information and best practices on these issues, while also covering Paris Club activity, methods and objectives.

Introductory remarks

New policies to promote sustainable financing practices

While many among the poorest countries have seen their debt burden reduced over the last decades, especially through the HIPC initiative, many remain vulnerable to debt crises, which includes several “post-HIPC” countries which are almost reaching pre-HIPC debt levels. Against this background, taking into account the IMF and World Bank’s framework for debt sustainability analysis, as well as their respective debt limit policies, is critical to promote sustainable financing practices, in line with the recommendations of the Addis Ababa Action Agenda. This session will address the new debt challenges faced by LICs, and discuss how the recent and upcoming reforms of these policies aim at helping countries to better manage risks.

Lead speaker: Min ZHU, IMF Deputy Managing Director

Innovation in Sovereign Debt Restructurings

Debt restructuring processes must develop new methods to adapt to a changing and uncertain financial environment. As demonstrated in the IMF 2013 paper “Too Little, Too Late”, the cost of debt restructurings is often increased by the fact that discussions on debt usually start when debt sustainability is already compromised. Introducing contingency instruments in debt contracts can be a way to achieve greater resilience to adverse economic or environmental events. Another promising avenue is to convert the benefits of a debt restructuring or buyback into an investment in the country’s economic fabric, as in the case of Seychelles’ environmental buyback.

Lead speaker: Jean Paul ADAM, Seychelles Minister of Finance, Trade and the Blue Economy

Concluding remarks

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Article

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Attachments:

agenda.pdf

Event date:

Thursday, 14 April, 2016 - 00:00

Agreement on the debt between Cuba and the Group of Creditors of Cuba

The representatives of the Group of Creditors of Cuba and of the Government of the Republic of Cuba met from 10 December to 12 December and agreed on 12 December 2015 on an arrangement to clear USD 2.6 billion of debt in arrears due to the Group of Creditors of Cuba over an 18-year period.

This arrangement offers a framework for a sustainable and definitive solution to the question of arrears due by the Republic of Cuba to the Group of the Creditors of Cuba covering a total stock of debt of USD 11.1 billion, including late interest, as of 31 October 2015.

During the meeting, the delegation of the Republic of Cuba provided a description of the economic and financial situation of its country and presented the measures taken by the Government of the Republic of Cuba aimed at supporting the Cuban economic development.

The Group of Creditors of Cuba welcomed progress made by the Republic of Cuba towards the normalization of its relations with creditors and the international financial community.

Realization of payments under a formal commitment of the Republic of Cuba to fully clear its arrears is a necessary and important step for the normalization of financial relationships between the Group of Creditors of Cuba and the Republic of Cuba. The Group of Creditors of Cuba's export credit agencies that wish to do so will resume their export credit activities.

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.

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News Type:

Press release

Subtitle:

The Group of Creditors of Cuba and the Republic of Cuba agree to clearance of all arrears.

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Attachments:

pr20151212cuba.pdf

Event date:

Saturday, 12 December, 2015 - 06:45

3rd Conference of the Paris Forum 2015

More than 50 sovereign actors discuss the future of sovereign debt at the third "Paris Forum"

Press release of the Paris Club Chairman and the Turkish Presidency of the G20

Paris, November 20th 2015 – Today, more than 50 sovereign creditors and debtors and international organizations gathered in Paris for the 3rd Paris Forum, held under the Turkisk presidency of the G20 and the presidency of the Paris Club.

Participants discussed new challenges in sovereign financing practices, as stressed in the Addis Ababa Action Agenda endorsed by the United Nations General Assembly in July 2015. Mr. Akinwumi Adesina, President of the African Development Bank, highlighted the importance of ensuring sustainable financing for development and fostering a frank and open dialogue between creditors and debtors in order to foster sound debt management practices and collective vigilance on a sustainable financing environment.

Participants discussed in depth the main challenges regarding sovereign debt restructuring processes, particularly from the perspective of the necessary balance between debt and development. They discussed ways to improve the current framework of coordinated and orderly sovereign debt restructuring processes. The Paris Forum allowed a wide range of sovereign actors to express their position on these issues. Participants agreed that the Paris Forum was a useful forum for a productive exchange of views between debtors and creditors.

The forum also saw the signature of three bilateral agreements amongst Belgium, France, Italy and the Government of Seychelles, implementing the debt buy-back agreed on February 2015 between Seychelles and its Paris Club creditors as well as South Africa. This buyback will allow for the the financing of an environmental protection scheme on the marine environment of Seychelles, as part of its strategy in favor of the blue economy.

This third annual conference gathered members of the Paris Club, its ad-hoc participants (Brazil, Korea, South Africa and China), members of the G20, members of the European Union (Czech Republic, Poland), and more than 10 representatives of emerging and developing countries (Colombia, Democratic Republic of Congo, Ethiopa, Ghana, Guinea, Kenya, Nicaragua, Seychelles, Trinidad & Tobago, Vietnam). International Monetary Fund, World Bank, the African Development Bank, the Central Bank of West African States and Unctad also participated in the conference.

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Press release

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Attachments:

pr20151120_parisforum.pdf

Event date:

Friday, 20 November, 2015 - 00:30

Rescheduling of Grenada's debt and introduction of hurricane clause

Representatives of Paris Club creditor countries met with representatives of the Government of Grenada on 18 and 19 November 2015 and agreed to reschedule its external public debt. This arrangement follows the International Monetary Fund’s approval of Grenada’s Extended Credit Facility on 26 June 2014 and the assurance by Paris Club creditors to contribute to its financing.

This arrangement reschedules US$ 8 million consisting of arrears (US$ 6 million including late interest) due as of 31 October 2015, half of which will be repaid upfront in two installments, as well as maturities falling due from 1st November 2015 to 30 June 2017 (US$ 2 million); rescheduled amounts will be repaid over 20 years including 7 years of grace for ODA claims and 15 years including 8 years of grace for NODA claims.

Paris Club creditors undertook to consider specific weather events that may impact Grenada’s ability to service its debt by embedding into the agreement a first-ever “hurricane clause”.

The Government of Grenada committed to seek comparable treatment from other creditors. The principle of comparability of treatment aims to ensure a balanced treatment among external creditors of the debtor country.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments.

2. The members of the Paris Club which participated in the reorganization of Grenada’s debt were representatives of the governments of France, the Russian Federation, the United Kingdom and the United States of America.

Observers at the meeting were representatives of the governments of Germany, Italy, Japan, the Netherlands, Norway and Spain, as well as the International Monetary Fund (IMF) and the World Bank.

3. The delegation of Grenada was headed by Mr. Timothy ANTOINE, Permanent Secretary, Ministry of Finance. The meeting was chaired by Mr. Guillaume CHABERT, Co-Chairman of the Paris Club.

Technical notes

1. Grenada’s economic program is supported by an Extended Credit Facility approved by the Executive Board of the International Monetary Fund (IMF) on 26 June 2014.

2. Grenada’s public external debt was estimated to be USD 610 million as of end 2014 (source: IMF documents). The debt owed to Paris Club creditors was estimated to be USD 11 million as of 1st November 2015 (source: Paris Club).

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News Type:

Press release

Subtitle:

The Paris Club reschedules Grenada's debt and introduces first-ever hurricane clause.

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Attachments:

prgrenada20151119.pdf

Event date:

Thursday, 19 November, 2015 - 00:45

Cancellation of the debt of Chad

Representatives of the Paris Club creditor countries met with representatives of the Government of the Republic of Chad on 24 June 2015 and agreed on a debt cancellation. The Republic of Chad reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 29 April 2015.

In order to contribute to restoring the debt sustainability of the Republic of Chad, Paris Club creditors decided to cancel USD 20.8 million in nominal terms, which represents the Paris Club’s share of the cancellation effort called for in the framework of the enhanced HIPC Initiative. Creditors welcomed and supported Chad’s commitment to seek comparable treatment from all its other external bilateral official and commercial creditors.

Paris Club creditors also confirmed their willingness to grant additional debt relief on a bilateral basis for an amount of USD 41.8 million.

This agreement and additional bilateral efforts will result in a cancellation of the debt of the Republic of Chad to Paris Club creditors by 100%, i.e. USD 62.6 million.

Paris Club creditors welcomed Chad’s determination to continue to implement a comprehensive poverty reduction strategy and an ambitious economic program providing the basis for sustainable economic growth.

The Republic of Chad has committed to use the resources freed by this debt treatment for priority areas identified in the country’s poverty reduction strategy and for inclusive growth.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries.

2. The members of the Paris Club which participated in the restructuring of the Republic of Chad’s debt were representatives of the Governments of France, Germany, Italy, the Netherlands and the Russian Federation. Observers at the meeting were representatives of the Governments of Austria, Belgium, Canada, Japan, the United Kingdom, the United States of America and of the International Monetary Fund, the International Development Association and the African Development Bank.

3. The delegation of the Republic of Chad was headed by Mr. Kordjé Bedoumra, Ministry of Finance and Budget. The meeting was chaired by Mr. Arnaud Buissé, Vice-Chairman of the Paris Club.

Technical notes

1. The Republic of Chad’s economic program is supported by a three year Arrangement under the Extended Credit Facility approved by the International Monetary Fund on 1st August 2014. Chad reached the Decision Point under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative in May 2001.

2. Chad’s external debt is estimated to be more than USD 2.81 billion as of end 2013 (source: IMF and IDA documents). The debt owed to Paris Club creditors was estimated to be USD 62.6 million as of 1st June 2015 (source: Paris Club).

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News Type:

Press release

Subtitle:

The Paris Club agrees on a total cancellation of the debt of Chad under the framework of the Enhanced Heavily Indebted Poor Countries Initiative.

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Attachments:

prchad20150624.pdf

Event date:

Wednesday, 24 June, 2015 - 00:15

Annual meeting with representatives of non Paris Club creditors and the private sector

Paris, June 23, 2015 – For the 15th consecutive year, the Paris Club and the Institute of International Finance jointly organized a meeting between Paris Club creditors, Paris Club ad hoc participants and private creditors, and representatives from the International Monetary Fund and the World Bank.

Public and private sector participants welcomed the opportunity to discuss and to contribute to the efforts to strengthen the framework for sovereign debt restructuring, highlighting the importance of dialogue between sovereign debtors and their creditors and stressed the importance of coordination among creditors conducive to an efficient system for sovereign debt crisis prevention and resolution.

Creditors reviewed the most recent trends in the global economy, with a special emphasis on emerging and low-income countries. They informally reviewed, with the input of the international financial institutions, ongoing efforts by the international community to financially assist Ukraine, and reviewed external shocks on small island states that jeopardize debt sustainability, and the ways in which the international community can contribute to fostering stability in those areas.

Creditors assessed implementation of the sovereign debt contractual reform, highlighting the benefits of transparency in information covenants to promote orderly sovereign debt restructuring with private creditors. They encouraged sovereign issuers to take full account of recent contractual improvements including aggregated Collective Action Clauses, model pari passu and creditor engagement clauses in sovereign debt contracts to facilitate—when necessary—orderly and fair debt restructuring.

The IMF informed the Paris Club and the IIF on the progress made in their current work stream regarding the strengthening of the contractual approach in sovereign debt restructuring. Private and public creditors discussed and reviewed past experiences and the challenges ahead to ensure the efficiency of sovereign debt restructurings by strengthening coordination between public and private sector creditors, including via the Annual IIF-Paris Club meeting.

Language English

News Type:

Press release

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Attachments:

pr20150623.pdf

Event date:

Tuesday, 23 June, 2015 - 00:00

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