London club
The London Club ( Eng.London Club or Club of London , French Club de Londres ) is an informal body that brings together creditor banks and debtor states that have got into financial difficulties with the aim of rescheduling , debt relief , a moratorium or changing the credit terms of private claims brings together.
history
It was created in May 1976 by the rescheduling of external debt of Zaire . Since August 1982 (the outbreak of the Mexico crisis), cooperation with the Paris Club has been guaranteed to coordinate state and credit creditors. The creditor banks represented in the London Club are based on the negotiations of the Paris Club. So there is a chain of causality that begins at the IMF . The IMF must have approved financial aid to a debtor state before the Paris Club takes action. If the latter enters into negotiations with the debtor state, the London Club can also act if necessary.
organization
Like the Paris Club, the London Club has no written legal bases, organizational constitutions or terms and conditions and functions solely on the basis of tradition and constant practice that has emerged over the past decades. It is therefore not one of the international non-governmental organizations . Unlike the Paris Club, the London Club has no secretariat and no fixed conference location. Initially, most of the negotiations took place in London, which led to its name being given.
Composition and working method
The London Club is made up of around 1,000 private creditor banks. He usually meets at the same time as the Paris Club. A commitment from the London Club requires at least a positive vote from the IMF and / or a commitment from the Paris Club. Without these conditions, the London club will not operate ( conditionality ). When the debt is canceled, usually only the actual loan amount is canceled, the accrued interest must still be paid back. The negotiations are not subject to any fixed regulations, nor is the debtor entitled to debt relief.
Web links
- Deutsche Bundesbank: Worldwide organizations and bodies in the field of currency and economy (PDF; 820 kB)