Home Foreign affairs Brazil will take Venezuela to the Paris Club, for unpaid debt

Brazil will take Venezuela to the Paris Club, for unpaid debt

688
0
SHARE

Brazil is likely on Tuesday ( Nov.14) to inform the Paris Club that Venezuela – that teeters on the brink of default – missed payment of  $262.5 million under a regional credit accord.

The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment.

Paris Club creditors provide debt treatments to debtor countries in the form of rescheduling, which is debt relief by postponement or, in the case of concessional rescheduling, reduction in debt service obligations during a defined period (flow treatment) or as of a set date (stock treatment).