Context:
Sri Lanka is close to finalising a debt treatment plan with India and the Paris Club
Paris Club:
- Paris Club – Informal group of creditor nations working to solve payment problems faced by debtor nations.
- Objective – To find sustainable debt-relief solutions for countries that are unable to repay their bilateral loans.
- Members – 22 permanent members (mostly western nations)
- All 22 are members of Organisation for Economic Co-operation and Development (OECD).
- Important members – United States, United Kingdom, and Japan.
- India is not a member.
- Other Features – It has no official statutes and no formal inception date
Source: The Hindu
Previous Year Question
“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?
[UPSC Civil Service Exam – 2022 Prelims]
(a) Asian Development Bank
(b) International Monetary Fund
(c) United Nations Environment Programme Finance Initiative
(d) World Bank
Answer: (b)
