Club de Paris

The Paris Club provides a debt treatment to the Republic of Suriname

Paris Club creditors agreed on 22 June 2022 with the Republic of Suriname to a restructuring of its external public debt. This agreement follows the financing assurances provided by the Paris Club creditors on 2 September 2021 to support the approval by the International Monetary Fund of an Arrangement under the Extended Fund Facility for the Republic of Suriname on 22 December 2021 and is consistent with IMF program parameters with respect to long-term debt sustainability.

Paris Club creditors will reschedule arrears and all maturities falling due during the IMF program period. The rescheduling is conducted under the following terms: ODA claims are to be repaid over 20 years (including 7 years of grace) and non-ODA claims are to be repaid over 15 years (including 8 years of grace). Under this agreement, all existing arrears as of end-2021 will be repaid in two instalments in 2022 and 2024.

Additionally, based on a future assessment that the Republic of Suriname has fulfilled all its commitments under the agreement, notably the comparability of treatment, and maintaining sound macroeconomic policies consistent with long-term debt sustainability, Paris Club creditors are committed to reschedule all maturities in capital falling due starting on 1 January, 2025. If the 2024 IMF assessment of the macroeconomic situation is consistent with the projections in the current EFF, the repayment schedule will be 17 years (including a 4-year grace period) for ODA claims and 12 years (including a 5-year grace period) for NODA claims from 1 December 2024.

This debt treatment will eventually allow the creditors to make additional efforts including through the conclusion of debt swaps, on a voluntary and bilateral basis, to support the country’s efforts in favour of environmental, social and governance goals.

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 Italy, France, the Netherlands, Israel and Sweden.

Observers at the meeting were representatives of the Governments of Australia, Belgium, Canada, Denmark, Germany, Ireland, Japan, the Republic of Korea, the Russian Federation, Spain, Switzerland, the United Kingdom and the United States of America, as well as of the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank, the European Commission, the Organisation for Economic Cooperation and Development (OECD) and the Secretariat of the United Nations Conference on Trade and Development (UNCTAD).

3. The delegation of the Republic of Suriname was headed by Mr. Armand ACHAIBERSING, 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 Industrial and Digital Sovereignty.

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 debt was estimated as of 31 December 2021 to be US$ 3,383 million and the stock of debt owed to Paris Club creditors was estimated to be US$ 98.3 million (source: Paris Club creditors).

3. The cut-off-date is used by Paris Club creditors for the sole internal purpose of the Paris Club agreement. When a debtor country first meets with Paris Club creditors, the "cut-off-date" is defined and is not changed in subsequent Paris Club treatments and credits granted after this cut-off- date are not subject to future rescheduling. Thus, the cut-off-date helps restore access to credit for debtor countries facing liquidity problems. Concerning the Republic of Suriname, the cut-off date was set at 29 April 2021.

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The Paris Club provides a debt treatment to the Republic of Suriname

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20220624_pr_suriname_22_june_2022-vf.pdf

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Friday, 24 June, 2022 - 11:00

The Paris Club releases comprehensive data on its claims as of 31 December 2021

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 published on the Paris Club website shows the total amount of claims as of 31 December 2021 held by Paris Club members on each borrower 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 borrower country level.

The total of Paris Club claims, excluding late interest, amounts to USD 333 billion of which USD 193 billion represents ODA claims and USD 140 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.

The table contains comprehensive data that cover the full range of claims held on sovereign countries and public entities by Paris Club members, who took part in this global data call.

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parisclub_claims_as_of_31_12_2021.pdf

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Tuesday, 14 June, 2022 - 19:30

Publication of the 2021 annual report of the Paris Club

The 2021 annual report of the Paris Club is now available on the Paris Club website.

In 2021, the Paris Club continued to be very active in promoting coordinated multilateral solutions to sovereign debt problems around the world. Its considerable efforts were reflected in the exceptional measure adopted by the G20 and the Paris Club in April 2020 and extended until the end of 2021 to provide support to 73 low-income countries during the COVID-19 crisis, by implementing the extensions of the Debt Service Suspensions Initiative (DSSI). From 1 May 2020 to 31 December 2021, the Paris Club has signed agreements to suspend approximately USD 4.6 billion in debt service owed by 42 low-income countries that requested the DSSI support.

With the expiration of the DSSI at the end of December 2021, and in order to address the significant debt-related vulnerabilities in low-income countries, the Paris Club creditors continue to affirm their commitment to implement the Common Framework for Debt Treatment beyond the DSSI. The Common Framework, endorsed by the members of G20 and the Paris Club, provides a coordinated response to all eligible countries that request and need debt treatment within the parameters of an IMF upper credit tranche programme. For the three countries - Chad, Ethiopia and Zambia - that have formally requested a debt treatment under the Common Framework, the Paris Club is committed to making significant and timely progress in the ongoing negotiations and appreciates the fruitful cooperation established with China and Saudi Arabia, respectively co-chairs of the creditor committees for Ethiopia and Chad.

The support to low-income countries was also provided through the implementation of the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC), the Paris Club signed on 15 July 2021 a multilateral agreement with Sudan. However, after the removal of the Transitional Government of Sudan by the military forces, the signature of the bilateral agreements implementing this multilateral one is suspended until the situation improves and the implementation of the IMF program resumes. The Paris Club continues to monitor carefully the situation, in close collaboration with the IMF and the World Bank Group.

In 2021, the Paris Club also provided assistance to emerging countries in need of a debt treatment. In particular, the Paris Club played a leading role by providing financing assurances in a timely manner which paved the way for Suriname to have access to IMF financial support.

Last year, Paris Club creditors have pursued their regular and constructive engagement with private creditors. Furthermore, they have continued to support greater debt transparency.

Background notes

1. The Paris Club was formed in 1956. It is an informal group of creditor governments whose main role is to coordinate official creditors during debt restructuring.

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.

3. The publication of an annual report, since 2008, is an example of Paris Club creditors’ commitment to enhance the transparency of the Club’s work and functioning.

4. The 2021 Paris Club annual report comprises six main chapters:

-- a chapter on the successful implementation of the Debt Service Suspension Initiative (DSSI) by the Paris Club,

-- a chapter on the strong support of the Paris Club and the implementation of the G20 and Paris Club Common Framework for Debt Treatments beyond the DSSI,

-- a chapter on the Paris Club's agreement with the Republic of the Sudan to restructure its external debt in the framework of the Enhanced Initiative for Heavily Indebted Poor Countries,

-- a chapter on the Paris Club's support to the approval of an IMF program for Suriname,

-- a chapter on the Paris Club's engagement with the private sector,

-- a chapter on the Paris Club's promotion of greater debt transparency.

In addition to these six main chapters, the annual report includes a presentation of the role of the Paris Club as well as its current claims on sovereign borrowers.

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20220614_pr_annual_report_2021.pdf

annual_report-rapport_annuel-clubdeparis-2021.pdf

Event date:

Tuesday, 14 June, 2022 - 18:45

Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe an extension of the time-bound suspension of debt service due from 1^stJanuary to 31^stDecember 2021.

The Government of the Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe 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 Democratic Republic of Sao Tome and Principe 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. In the first extension, Portugal participates in the reorganization of the Democratic Republic of Sao Tome and Principe’s debt.

As for the final extension, the member of the Paris Club which participates in the reorganization of the Democratic Republic of Sao Tome and Principe’s debt is the government of Belgium.

Observers to the agreement are representatives of the governments of Australia, Austria, Brazil, Canada, Denmark, Finland, France, 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.

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Sao Tome and Principe benefits from the extension of the DSSI

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20220308_pr_extensions_1_and_2-dssi_sao_tome.pdf

Event date:

Tuesday, 8 March, 2022 - 14:45

The Paris Club has fully and successfully implemented the DSSI and its extensions

The Debt Service Suspension Initiative (DSSI) was a historic and exceptional measure taken jointly by the G20 and the Paris Club on April 15, 2020 to offer support to 73 eligible low-income countries as they weathered the Covid-19 crisis.

The Paris Club has fulfilled its commitments to provide a debt service suspension to all requesting eligible countries. From May 1^st, 2020 to December 31, 2021, Paris Club creditors suspended around USD 4.6 Bn of debt service due by 42 low income countries that signed an agreement with the Paris Club (cf. appendix). Portugal and Turkey, which are not members of the Paris Club, signed jointly with the Paris Club agreements implementing the DSSI and/or its extension. Turkey has participated in the reorganization of the debt of the Republic of Congo and Portugal in that of Cabo Verde and São Tomé e Príncipe.

By implementing the DSSI in a transparent manner, Paris Club creditors have made a significant contribution to support low-income countries during the Covid-19 crisis. The Paris Club’s longstanding experience, as well as the prompt mobilization and commitment of its 22 members, have been instrumental to implement this swift and appropriate response to the crisis within a few weeks of the outbreak of the pandemic.

Despite some implementation challenges, Paris Club creditors consider that the DSSI has been successful in assisting low income countries and demonstrates that coordination among official bilateral creditors can deliver meaningful results. While Paris Club creditors have granted the DSSI to all debtor countries that requested it, they take note that a significant share of eligible countries have not yet concluded agreements with all their other G20 creditors. They note the uneven implementation among official bilateral creditors who agreed to the initiative but also the significant contribution made by the other G20 creditors. They regret the absence of a broad voluntary participation from private creditors. Yet, Paris Club creditors consider that the DSSI has reached its objective to support, in a coordinated manner with G20 non Paris Club members, low-income countries while preserving their market access.

After the expiration of the DSSI at the end of December 2021, Paris Club creditors recall their strong commitment to the ongoing implementation of the G20 and Paris Club Common Framework for Debt treatment Beyond the DSSI for all eligible countries which need a debt treatment consistent with the parameters of an Upper Credit Tranche IMF program. To date, three countries have made a formal request for the benefit of a debt treatment under the Common Framework (Chad, Ethiopia and Zambia). Paris Club members look forward to meaningful progress in the ongoing negotiations, in particular the conclusion between the creditor committee and Chad of a debt treatment in a timely manner for the first review of the IMF program. Paris Club members also urge Chad’s private creditors and other official bilateral creditors to provide a debt treatment on terms at least as favorable. Furthermore, following the staff level agreement reached with IMF last December, Paris Club creditors stand ready to take part in the formation of a creditor committee and proceed without delay on the request from Zambia for a debt treatment within a creditor committee.

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 Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, 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.

Appendix

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Le Club de Paris a mis en œuvre avec succès l'ISSD et ses extensions

Attachments:

20220223_pr_dssi-vf.pdf

Event date:

Wednesday, 23 February, 2022 - 19:30

The Republic of Yemen 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 Yemen 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 Yemen an extension of the time-bound suspension of debt service due until 31^stDecember 2021.

The Government of the Republic of Yemen 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 Yemen 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 Yemen 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 Republic of Yemen’s debt are the governments of Denmark, France, Italy, Japan, the Republic of Korea, the Russian Federation, Spain and the United States of America.

Observers to the agreement are representatives of the governments of Australia, Austria, Belgium, Brazil, Canada, Finland, Germany, Ireland, Israel, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom.

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La République du Yémen bénéficie de l’extension de l’ISSD

Attachments:

20220113_pr_extension_dssi_yemen.pdf

Event date:

Thursday, 13 January, 2022 - 18:00

Saint Lucia 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 Saint Lucia 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 Saint Lucia an extension of the time-bound suspension of debt service due from 1^st July to 31^stDecember 2021.

The Government of Saint Lucia 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 Saint Lucia 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 Saint Lucia 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 Saint Lucia’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.

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Saint Lucia benefits from the final extension of the DSSI

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20211222_pr_final_extension_dssi_saint_lucia.pdf

Event date:

Wednesday, 22 December, 2021 - 10:30

The Democratic Republic of the Congo 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 Democratic Republic of the Congo 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 Democratic Republic of the Congo an extension of the time-bound suspension of debt service due from 1^st July to 31^stDecember 2021.

The Government of the Democratic Republic of the Congo 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 Democratic Republic of the Congo 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 Democratic Republic of the Congo 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 Democratic Republic of the Congo’s debt are the governments of France and the Republic of Korea.

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 Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America.

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The Democratic Republic of the Congo benefits from the final extension of the DSSI

Attachments:

20211216_pr_final_extension_dssi_drc.pdf

Event date:

Thursday, 16 December, 2021 - 12:15

The Republic of Senegal 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 Republic of Senegal 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 Republic of Senegal an extension of the time-bound suspension of debt service due from 1^st July to 31^stDecember 2021.

The Government of the Republic of Senegal 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 Senegal 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 Senegal 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 Republic of Senegal’s debt are the governments of Belgium, Brazil, France, Japan, the Republic of Korea and Spain.

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

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The Republic of Senegal benefits from the final extension of the DSSI

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20211216_pr_final_extension_dssi_senegal.pdf

Event date:

Thursday, 16 December, 2021 - 12:00

The United Republic of Tanzania 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 United Republic of Tanzania 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 United Republic of Tanzania an extension of the time-bound suspension of debt service due from 1^st July to 31^stDecember 2021.

The Government of the United Republic of Tanzania 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 United Republic of Tanzania 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 United Republic of Tanzania 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 United Republic of Tanzania’s debt are the governments of Belgium, France, Japan, the Republic of Korea and the Russian Federation.

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

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Tanzania benefits from the final extension of the DSSI

Attachments:

20211213_pr_final_extension_dssi_tanzania.pdf

Event date:

Monday, 13 December, 2021 - 18:15

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