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.
Key points
- The Paris club has also called upon the Global north and south to take a similar haircut in restructuring of Sri Lankan debt. So far no official proposal has been made by Paris club to China or India.
- The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.
- The Paris Club is a group of currently 22 permanent members.
- Other creditor countries can participate in negotiation meetings on a case by case basis, provided that certain conditions are met.
- The original eleven members have now become 22: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Russia, Spain, Sweden, Switzerland, the UK, and the USA. Other creditor countries may occasionally participate.
