Q. “Paris Club” is often seen in news is related to?
Explanation: It is an informal group of official creditors from 22 wealthy countries who find sustainable solutions for challenges faced by debtor countries.
- It provides a platform for governments facing financial difficulties to reduce and renegotiate their debt repayments.
- Formed in 1956, it has signed more than 400 agreements to date, worth more than half a trillion dollars to about 100 countries.
- The “G20 Common Framework” is an initiative endorsed by the G20 together with the Paris Club.
- Other creditor nations are allowed to participate in negotiation meetings on a case-by-case basis, if they meet certain conditions.