The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Paris Club members adapt to new rules

THE PARIS CLUB has gone through fundamental change over the past year. First it agreed to an enormous debt reduction for Iraq, then it started to allow debtor nations to buy back their debts. Most recently, it came to a long-awaited and ground-breaking agreement with Nigeria that involved elements of both debt reduction and buyback.

At the same time, the official creditors' association's members are generally avoiding bilateral lending in favour of granting credits through multilateral institutions. Many private-sector creditors remain critical of the Paris Club's opacity and high-handedness. But the future of the Club seems clear: more debt reduction, more buybacks, and less lending mean that it could be reforming itself out of relevance.

That would by no means be a bad thing. The Paris Club is almost unique among creditors in never wanting to roll over its debt; also, of course, it has a lot more political clout than the average bank or bondholder. For those reasons, most countries would rather not borrow from it. And for their part, Paris Club members, most of them in tough fiscal situations of their own, have no particular love of lending to other nations.

They have also, over the past decade, seen outright debt forgiveness move from being a bad thing fiscally to being a good thing politically.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree