According to the Sri Lankan Prime Minister Ranil Wickremesinghe, two Quad members (India and Japan), and one Belt and Road Initiative member (China), and one Paris Club member (Japan) and two non-Paris Club members (India and China) are assisting the country to resolve the debt crisis.
About Paris Club
- 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.
- After the Argentine President Juan Domingo Peron was overthrown by a military coup in 1955, the new regime was eager to re-establish the good-will of the creditors. They quickly requested membership to the IMF and the World Bank.
- This meant regularising their debt situation and meeting with their principal creditor countries.
- This meeting was held on 16 May 1956 in Paris at the invitation of the French Minister of the Economy and was the founding act of the ’Paris Club’.
- Now, the Paris Club, along with the IMF and the World Bank, has become a strategic instrument of the developed countries for maintaining their grip on the world’s economy.
- The Club still meets in the premises of the French Ministry of the Economy at Bercy in Paris, where it has its headquarters; its aim is to renegotiate the debt of the developing countries having repayment difficulties.
- The original eleven members have now become 20: 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.
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