Ready to start the debt relief process for Sri Lanka, the Paris Club said on Friday, according to Reuters.
It also noted its willingness to coordinate with the lenders of the Asian country that are not members of the Club, in order to provide the necessary financial guarantees in a short time, according to a related announcement.
The Paris Club is a group of representatives of major creditor countries, whose role is to resolve debt repayment problems of borrowing countries.
The Paris Club was founded in 1956, when the first negotiation took place between Argentina and its sovereign creditors in Paris. It deals with public claims from governments of debtor countries and from representatives of the private sector, which are secured by the governments of the Paris Club members. A similar function, as far as the private sector is concerned, was undertaken by the London Club, which was founded in 1970, with its constitution based on that of the Paris Club.
Since 1956, the Paris Club has signed 433 agreements with 90 different countries, with the cost of the agreements amounting to US$583 trillion.
Source: Capital
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