Abstract
Abstract The Paris Club is an informal group of creditor countries. It meets to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries threatened by, or in an actual state of default. The first meeting of the Paris Club was held in 1956 when Argentina met with its creditors. Since that time, the Paris Club has focused on medium‐ and long‐term debt owed by sovereign states to other sovereign states. A similar organization, the London Club, meets from time to time to restructure sovereign debt to commercial lenders such as banks, usually after an agreement has already been reached in the Paris Club and coterminous with a standby arrangement with the IMF. Debt to multilateral creditors such as the IMF and the World Bank is likewise handled in other forums. As an agreement in one forum affects what happens in another, these groups constitute important meeting‐places in the governance process associated with sovereign debt.
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