The Paris Club is an informal organization of economically developed creditor countries that settles the debts of developing countries unable to service their debts. For optimal decisions on debt restructuring and deferrals, creditor countries should exchange information and interact with debtor countries in the case of difficulties with the return of funds from debtor countries. Thus, in 1956, at the initiative of France, the participants of the organization met in Paris to discuss Argentina's debt for the first time. Since then, the organization has been known as the Paris Club of Creditors. To date, 21 countries are permanent members of the Paris Club: France, Germany, Great Britain, USA, Japan, Russia, etc.

The Paris Club is an informal group of creditor nations that emerged in 1956 to address the issue of sovereign debt and facilitate coordinated solutions for debtor countries facing financial challenges. The club operates as an ad hoc consortium of major creditor nations, primarily from the Western world, and its primary goal is to negotiate and restructure the debt of debtor countries.

Member nations, including major economies such as the United States, Germany, and France, meet periodically in Paris to discuss and negotiate debt rescheduling or relief for countries experiencing economic difficulties. The Paris Club's involvement often results in the rescheduling of debt payments, reduction of interest rates, or other favorable terms to alleviate the financial burden on debtor nations.

The Paris Club operates on the principle of creditor solidarity, promoting a coordinated approach to debt restructuring to avoid chaotic and unilateral actions by individual creditors. Its actions aim to provide a framework for sustainable economic recovery in debtor nations while ensuring that creditors are repaid over an extended period.

Over the years, the Paris Club has played a crucial role in addressing global financial challenges and promoting stability by fostering dialogue and cooperation among creditor nations and debtor countries.