Definitions for "Paris Club"
Term used to describe when a debtor nation meets with creditor nations to renegotiate...
The Paris Club, originally formed in 1956, is the forum in which creditor nations meet to negotiate the debts owed to them (bilateral aid loans and guaranteed export credits). There are currently 19 permanent members of the Paris Club (Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Russian Federation, Spain, Sweden, Switzerland, UK, USA).  Other official creditors can participate subject to the agreement of the permanent members and the debtor country.
The Paris Club is an informal group of creditor nations whose role is to alleviate the financial burden of countries having difficulty repaying foreign debts. The group examines the balance of debts at borrowing nations and explores ways to reduce them. It holds meetings at France's Finance Ministry in Paris, from which it derives its name. The 19 official members include Japan, the U.S. and some European countries. But other nations are sometimes invited to participate in the club's meetings. In 1991, just after the end of the Cold War, the Paris Club agreed to reduce Poland's debt. The group also wrapped up debt negotiations with Egypt and other countries. But Paris Club lenders are divided over debt relief for Iraq, which is rich in oil and other natural resources.