Russian club paris

As debtor countries undertake russian club paris to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment. The Paris Club was created gradually from 1956, when the first negotiation between Argentina and its public creditors took place in Paris.

Creditor countries meet ten times a year in Paris for Tour d’Horizon and negotiating sessions. To facilitate Paris Club operations, the French Treasury provides a small secretariat, and a senior official of the French Treasury is appointed chairman. Creditor delegations are generally led by a senior delegate from the Ministry of Finance. Other official creditors can also participate in negotiation sessions or in monthly “Tours d’Horizon” discussions, subject to the agreement of permanent members and of the debtor country. When participating in Paris Club discussions, invited creditors act in good faith and abide by the practices described below. Paris Club countries which have claims on the debtor country concerned but are not in a position to sign the Paris Club agreement as ad hoc participants, provided that permanent members and the debtor country agree on their attendance.

The Secretariat was established to prepare more effectively negotiating sessions. The Secretariat is composed of a dozen people from the Treasury of the French Ministry of Finance and Public Accounts. The Secretariat’s role is primarily to safeguard the common interests of creditor countries participating in the Club, and to facilitate the reaching of a consensus between them at each level of the discussions. To achieve this, the Secretariat prepares negotiating sessions according to a specific method. In the early stages of discussions, the Secretariat analyses the debtor country’s payment capacity and provides creditors with a first proposal for a treatment.

The Secretariat is also responsible for drafting the minutes of negotiation. The Secretariat also helps to ensure compliance with the various covenants contained in the minutes and maintains external relations with third States creditors and commercial banks, in particular to ensure the greatest possible respect of comparability clause treatment. Since 1956, the Presidency of the Paris Club is ensured by the French Treasury. The Chairperson of the Paris Club is Odile Renaud Basso, Director General of the French Treasury. One of these three co-Chairmen must chair every meeting of the Paris Club. In particular, during negotiation sessions, the Chairman of the Paris Club plays the role of intermediary between creditors, who elaborate debt treatment proposals, and the representative of the debtor country, usually the Minister of Finance.

He is responsible for submitting to the debtor’s delegation terms agreed upon by creditors. Solidarity: All members of the Paris Club agree to act as a group in their dealings with a given debtor country and be sensitive to the effect that the management of their particular claims may have on the claims of other members. Consensus: Paris Club decisions cannot be taken without a consensus among the participating creditor countries. Information sharing: The Paris Club is a unique information-sharing forum. Paris Club members regularly share views and information with each other on the situation of debtor countries, benefit from participation by the IMF and World Bank, and share data on their claims on a reciprocal basis. In order for discussions to remain productive, deliberations are kept confidential.

Case by case: The Paris Club makes decisions on a case-by-case basis in order to tailor its action to each debtor country’s individual situation. This principle was consolidated by the Evian Approach. Comparability of treatment: A debtor country that signs an agreement with its Paris Club creditors should not accept from its non-Paris Club commercial and bilateral creditors terms of treatment of its debt less favorable to the debtor than those agreed with the Paris Club. Paris Club creditor countries generally meet 10 times per year. Paris Club creditors discuss debt situations of debtor countries, or methodological issues regarding the debt issues more broadly. The session may also include negotiation meetings with one or more debtor countries. Other official bilateral creditors may be invited to attend negotiation meetings on an ad-hoc basis, subject to the agreement of permanent members and of the debtor country.

After a few words from the chairman to welcome everybody and to open the meeting, the official meeting begins with a statement by the minister of the debtor country, who presents in particular the requested debt treatment. This statement is followed by statements by the IMF and the World Bank, and, if appropriate, by representatives of other international institutions. The representatives of creditor countries may then request additional information or clarification from the minister regarding the situation in the debtor country. After responding to any questions, the delegation of the debtor country then leaves the main room and stays in another room during the entire session. Creditors then discuss among themselves a proposed debt treatment. Once creditors agree on a treatment, the chairman of the meeting will then present this proposed treatment to the delegation of the debtor country. If the debtor country disagrees and asks for amendments to the creditors’ proposal, the chairman will then convey this request to the creditors, who discuss it and consider a new proposal.