TutorOn by Sanath Withanage

Question:

The Paris Club deals primarily with the restructuring of
(1) medium and long term public debt held by private creditors including commercial banks.
(2) medium and long term public debt of developing countries borrowed from developed countries.
(3) medium and long term public debt issued by a member country to a sovereign borrower.
(4) Public debt with short-term maturity.
(5) public debt owed to multilateral lending institutions.

Correct Answer:

(2), but marking scheme says (3)

Answer Explanation:

The Paris Club is an informal group of official creditors (mostly developed nations) whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries (bilateral sovereign debt).

Topic: Sri Lankan Economy Year: 2023