London Club
From Taighde
The London Club is an international group of private commercial banks whose credits are not covered by government guarantees or insurance (see also the Paris Club). The group is designed to help developing countries in repaying their foreign debt. The London Club incorporates 600 commercial banks of industrialized countries.
The London Club's first meeting was held in 1976 in an attempt to solve Zaire’s payment problems. The London Club operates in close contacts with the Paris Club, the Group of 8, and other international financial institutions. It meets informally, on an ad hoc basis, or whenever a debtor country requests debt relief.
With particular regard to Russia, since 1991 the London Club has undertaken with Vnesheconombank to reschedule Soviet-era debt to private banks on credits that were uninsured or guaranteed by state-run companies. In October 1997 USD 28.2 billion in debt were rescheduled by the London Club. Payments to the London Club creditors were suspended during Russia's 1998 financial crisis, and in 2000 a new debt restructuring agreement was made that amounts to USD 21.15 billion with maturity dates in 2010 and 2030.
