<h1 class="ql-align-center"><span style="color: rgb(230, 0, 0);">Paris Club</span></h1><p class="ql-align-center"><br></p><p class="ql-align-justify"><strong>CONTEXT</strong>: Paris Club creditor nations are proposing a 10-year moratorium on Sri Lankan debt and another 15 years of debt restructuring as a formula to resolve the Sri Lankan debt crisis.</p><p class="ql-align-justify"><br></p><h3 class="ql-align-justify">More about the news </h3><ul><li class="ql-align-justify">Earlier this year, <strong>Sri Lanka</strong> had defaulted on its 51 billion dollar external debt in the midst of a spiraling political and economic crisis.</li><li class="ql-align-justify">India has provided emergency aid to the tune of four billion dollars.</li><li class="ql-align-justify">The Paris club has also called upon the <strong>Global north and south</strong> to take a similar haircut in restructuring of Sri Lankan debt.</li></ul><p class="ql-align-justify"><br></p><h3 class="ql-align-justify">About </h3><ul><li class="ql-align-justify">It is an informal group of official creditors from 22 wealthy countries who find sustainable solutions for challenges faced by debtor countries.</li><li class="ql-align-justify">Unlike China and India, Japan is a member of the Paris Club.</li><li class="ql-align-justify">It provides a platform for governments facing financial difficulties to reduce and renegotiate their debt repayments.</li><li class="ql-align-justify">The “<strong>G20 Common Framework”</strong> is an initiative endorsed by the G20 together with the Paris Club.</li><li class="ql-align-justify">The origin of the club is traced to a meeting that happened in Paris between officials from Argentina, which had trouble paying back its debt, with a group of lenders in 1956.</li><li class="ql-align-justify">It is similar to the <strong>London club</strong>, which is a group of commercial bankers formed in 1976 to deal with the financial problems of Zaire, and is focused on providing various forms of debt relief to countries that face financial distress due to their heavy debt load.</li></ul><p class="ql-align-justify"><br></p><h1 class="ql-align-center">PRELIMS NOTES:<a href="https://www.sunyaias.com/subscription-details/prelims-2023-sunya-notes-current-affairs" rel="noopener noreferrer" target="_blank" style="color: rgb(102, 163, 224);">CLICK HERE</a></h1>