The first meeting of the London Club took place in 1976 in response to Zaire's debt payment problems, where the lender met to renegotiate commercial banks’ debt. There is no permanent London Club membership and it has no formal mandate. The PARIS CLUB (ENCYCLOPEDIA) and the London Club are the two principal frameworks for restructuring (or, more practically, for rescheduling) sovereign debt. At a debtor nation’s request, a London Club meeting of its creditors may be formed, and the Club is subsequently dissolved after the restructuring. In the London Club, the interests of the creditor banks’ are represented by a steering committee composed of those banks with the greatest exposure to the debtor country in question.
Editor: Giovanni AVERSA