Keeping the Creditor Nations Divided

JcollinsEconomics, Geopolitical, Premium POM

China, the Paris Club and Sovereign Debt Restructuring

There are three core solutions which can be used to address sovereign debt. The first are Collective Action Clauses (CAC’s). The second is the Sovereign Debt Restructuring Mechanism (SDRM) of the International Monetary Fund (IMF). The third consists of agreements and processes as negotiated within the Paris Club.

Over the last 4 years we have covered both CAC’s and the SDRM, but have only touched on the Paris Club in a few articles. The Club is comprised of the world’s creditor nations. These nations are China, Malaysia, Russia, Japan, Germany, South Korea, Taiwan, Netherlands, Belgium, Israel, Switzerland, Hong Kong, Denmark, Norway, Singapore, Australia, France, Italy, Spain, Sweden, and Luxembourg.

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