Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations.
138-448: 13 ad hoc member states Paris Club ( French : Club de Paris ) is a group of major creditor countries aiming to provide a sustainable way to tackle debt problems in debtor countries. The Paris Club treats public claims (that is to say, those due by governments of debtor countries and by the private sector), guaranteed by the public sector to Paris Club members. A similar process used to occur for public debt held by private creditors in
276-812: A 67% debt reduction). In addition, stock of treatments can be applied in each case for countries that have complied satisfactorily with previous commitments. Up to 2008, 35 of 39 countries have reached the completion point of the Heavily Indebted Poor Countries HIPCs. Finally, in September 1996, the joint proposal of the Development Committee of the World Bank and the IMF Interim Committee, the international financial community has recognized that
414-409: A CCAA application gets finally rejected, the company in question can be forced into receivership or bankruptcy . This could happen for a number of reasons, chief among them being a failure to come to an agreement with creditors as to how to restructure the debt. Under Swiss law, debt restructuring may occur out of court, or through a court-mediated debt restructuring agreement that may provide for
552-467: A Division 1 Proposal and a CCAA filing. The former is available to both corporations and individuals who owe $ 250,000 or more to creditors. The latter is available only to larger companies owing more than $ 5 million to their creditors. A Division 1 Proposal is a last resort. Created by the Bankruptcy and Insolvency Act of 1985, the option to file Division 1 is not an option to be taken lightly as, in
690-744: A French official to teachers in the department of Finistère , in western Brittany, included the following: "And remember, Gents: you were given your position in order to kill the Breton language". The prefect of Basses-Pyrénées in the French Basque Country wrote in 1846: "Our schools in the Basque Country are particularly meant to replace the Basque language with French..." Students were taught that their ancestral languages were inferior and they should be ashamed of them; this process
828-431: A comprehensive academic study entitled "The World's 10 most influential languages". In the article, Weber ranked French as, after English, the second-most influential language of the world, ahead of Spanish. His criteria were the numbers of native speakers, the number of secondary speakers (especially high for French among fellow world languages), the number of countries using the language and their respective populations,
966-590: A comprehensive debt treatment, provided that they are committed to policies that will secure an exit from the Paris Club process, in the framework of their IMF arrangements. The Paris Forum is an annual event, jointly organized by the Paris Club and the rotating Presidency of the G20 , since 2013. The conference gathers representatives from creditor and debtor countries, and is a forum for frank and open debate on
1104-415: A debt-for-equity swap, a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company. Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there
1242-540: A dissenting minority is only possible under formal insolvency proceedings in Germany . As the incidence of corporate failures has increased in part due to current economic climate, so a more "standard" approach to restructuring has developed. Although every case has unique characteristics, the process of restructuring follows a number of important phases. Initially, declining financial performance will cause key financial covenants - for example, leverage ratios - along with
1380-450: A downward spiral in the years leading up to 1986, pushing U.S. farmers' debts to levels above $ 200 billion. This 12th line of the U.S. Bankruptcy Code was initially added only as a temporary measure and remained as a temporary measure until 2005, when it became permanent. Chapter 12 was of great benefit to farmers, because Chapter 11 was often too expensive for family farms and generally only useful for sizeable corporations, while Chapter 13
1518-522: A few words from the chairman to welcome everybody and to open the meeting, the official meeting begins with a statement by the minister of the debtor country, who presents in particular the requested debt treatment. This statement is followed by statements by the IMF and the World Bank, and, if appropriate, by representatives of other international institutions. The representatives of creditor countries may then request additional information or clarification from
SECTION 10
#17327575809181656-555: A foreign language. Due to the rise of French in Africa, the total French-speaking population worldwide is expected to reach 700 million people in 2050. French is the fastest growing language on the continent (in terms of either official or foreign languages). French is increasingly being spoken as a native language in Francophone Africa, especially in regions like Ivory Coast , Cameroon , Gabon, Madagascar , and
1794-486: A need for debt relief. When the flow treatment extends over a long period of time (generally more than one year), the Paris Club agreement is divided into phases. The amounts falling due during the first phase are treated as soon as the agreement enters into force. Subsequent phases are implemented following completion of conditions mentioned in the Agreed Minutes, including non-accumulation of arrears and approval of
1932-504: A number of ways. In situations where every single impaired creditor of a firm agrees to a settled schedule of repayment, the plan formed is known as a "consensual plan." When a certain class a firm owes does not accept a restructuring plan, said plan may still be approved pursuant to the United States Bankruptcy Code. Such plans are colloquially referred to as "cramdown plans." Chapter 11 is considered to be one of
2070-484: A partial waiver of debts, or for a liquidation of the debtor's assets by the creditors. The majority of debt restructuring within the United Kingdom is undertaken on a collaborative basis between the borrower and the creditors. Should this be unsatisfactory in the first instance, the court may be asked to mediate and appoint administrators. Among the most common forms of in-court debt restructuring for firms in
2208-705: A period of prosperity and prominence among European nations. Richelieu established the Académie française to protect the French language. By the early 1800s, Parisian French had become the primary language of the aristocracy in France. Near the beginning of the 19th century, the French government began to pursue policies with the end goal of eradicating the many minorities and regional languages ( patois ) spoken in France. This began in 1794 with Henri Grégoire 's "Report on
2346-432: A primary way for small businesses to refinance in light of reduced lines of credit and direct borrowing. Debt mediation can be cost-effective for small businesses, help end or avoid litigation, and is preferable to filing for bankruptcy. While there are numerous companies providing restructuring for large corporations, there are few legitimate firms working for small businesses. Legitimate debt restructuring firms only work for
2484-494: A relic of the old nominal case system of Latin longer than most other Romance languages (with the notable exception of Romanian which still currently maintains a case distinction), differentiating between an oblique case and a nominative case. The phonology was characterized by heavy syllabic stress, which led to the emergence of various complicated diphthongs such as -eau which would later be leveled to monophthongs. The earliest evidence of what became Old French can be seen in
2622-587: A second language. French is the second most taught foreign language in the EU. All institutions of the EU use French as a working language along with English and German ; in some institutions, French is the sole working language (e.g. at the Court of Justice of the European Union ). French is also the 16th most natively spoken language in the world, the sixth most spoken language by total number of speakers , and
2760-526: A second language. However it has also become a native language in a number of urban areas, especially in regions like Ivory Coast , Cameroon , Gabon, Madagascar , and the Democratic Republic of the Congo . In some North African countries, though not having official status, it is also a first language among some upper classes of the population alongside indigenous languages, but only
2898-941: A second one among the general population. In 2015, approximately 40% of the Francophone population (including L2 and partial speakers) lived in Europe, 36% in sub-Saharan Africa and the Indian Ocean, 15% in North Africa and the Middle East, 8% in the Americas, and 1% in Asia and Oceania. French is the second most widely spoken mother tongue in the European Union . Of Europeans who speak other languages natively, approximately one-fifth are able to speak French as
SECTION 20
#17327575809183036-615: A similar amount. Such progress is consistent with the HIPC initiative’ objective, namely, to reallocate the increased spending capacity towards the fight against poverty and to accelerate progress toward the United Nations Millennium Development Goals. Apart from the HIPC initiative, the Paris Club adopted a new framework for debt restructuring in 2003, the Evian approach . Through the Evian framework,
3174-736: A small secretariat, and the Director general of the French Treasury acts as chairman. Paris club has reached 478 agreements with 102 debtor countries to date for approximately USD 600 bn rescheduled. There are currently 22 Permanent Members of the Paris Club: Creditor delegations are generally led by a senior delegate from the Ministry of Finance. Other official creditors can also participate in negotiation sessions or in monthly "Tours d'Horizon" discussions, subject to
3312-547: A variant of Canadian French , is spoken in parts of New England . Missouri French was historically spoken in Missouri and Illinois (formerly known as Upper Louisiana ), but is nearly extinct today. French also survived in isolated pockets along the Gulf Coast of what was previously French Lower Louisiana , such as Mon Louis Island , Alabama and DeLisle, Mississippi (the latter only being discovered by linguists in
3450-437: Is 95%, and in the French collectivity of Wallis and Futuna , it is 84%. In French Polynesia and to a lesser extent Wallis and Futuna, where oral and written knowledge of the French language has become almost universal (95% and 84% respectively), French increasingly tends to displace the native Polynesian languages as the language most spoken at home. In French Polynesia, the percentage of the population who reported that French
3588-521: Is Shanti Bobin, his Deputy in charge of Multilateral Financial Affairs and Development Division. One of these three must chair every meeting of the Paris Club. In particular, during negotiation sessions, the Chairman of the Paris Club plays the role of intermediary between creditors, who elaborate debt treatment proposals, and the representative of the debtor country, usually the Minister of Finance. He
3726-779: Is a Romance language of the Indo-European family . Like all other Romance languages, it descended from the Vulgar Latin of the Roman Empire . French evolved from Gallo-Romance , the Latin spoken in Gaul , and more specifically in Northern Gaul. Its closest relatives are the other langues d'oïl —languages historically spoken in northern France and in southern Belgium, which French ( Francien ) largely supplanted. French
3864-472: Is a widespread second language among the Lebanese people , and is taught in many schools along with Arabic and English. French is used on Lebanese pound banknotes, on road signs, on Lebanese license plates , and on official buildings (alongside Arabic). Today, French and English are secondary languages of Lebanon , with about 40% of the population being Francophone and 40% Anglophone. The use of English
4002-489: Is also a working language in nonprofit organisations such as the Red Cross (alongside English, German, Spanish, Portuguese, Arabic and Russian), Amnesty International (alongside 32 other languages of which English is the most used, followed by Spanish, Portuguese, German, and Italian), Médecins sans Frontières (used alongside English, Spanish, Portuguese and Arabic), and Médecins du Monde (used alongside English). Given
4140-430: Is among the top five most studied languages worldwide, with about 120 million learners as of 2017. As a result of French and Belgian colonialism from the 16th century onward, French was introduced to new territories in the Americas, Africa, and Asia. French has a long history as an international language of literature and scientific standards and is a primary or second language of many international organisations including
4278-462: Is an official language in 27 countries , as well as one of the most geographically widespread languages in the world, with about 50 countries and territories having it as a de jure or de facto official, administrative, or cultural language. Most of these countries are members of the Organisation internationale de la Francophonie (OIF), the community of 54 member states which share
Paris Club - Misplaced Pages Continue
4416-583: Is appointed by the court to run the business until all bankruptcy proceedings are completed. Chapter 12 Bankruptcy is a form of debt restructuring in the United States available to farms and fisheries exclusively; said businesses could be family-owned or owned by corporations. The special debt restructuring rights accorded to farmers and fisheries consequent line 12 of the United States Bankruptcy Code were first granted by Congress in 1986 amid an agricultural debt crisis. Food commodity prices were caught in
4554-652: Is enacted only in New Brunswick, where about one third of the population is Francophone. French is also an official language of all of the territories ( Northwest Territories , Nunavut , and Yukon ). Out of the three, Yukon has the most French speakers, making up just under 4% of the population. Furthermore, while French is not an official language in Ontario , the French Language Services Act ensures that provincial services are available in
4692-503: Is growing in the business and media environment. Out of about 900,000 students, about 500,000 are enrolled in Francophone schools, public or private, in which the teaching of mathematics and scientific subjects is provided in French. Actual usage of French varies depending on the region and social status. One-third of high school students educated in French go on to pursue higher education in English-speaking institutions. English
4830-404: Is known as Old French. The period of Old French spanned between the 8th and 14th centuries. Old French shared many characteristics with Latin. For example, Old French made use of different possible word orders just as Latin did because it had a case system that retained the difference between nominative subjects and oblique non-subjects . The period is marked by a heavy superstrate influence from
4968-475: Is more flexible and can provide debt cancellation to a greater number of countries than was available under prior Paris Club rules. Prior to the Evian Approach's introduction, debt cancellation was restricted to countries eligible for IDA loans from the World Bank under Naples Terms or HIPC countries under Cologne terms. Many observers believe that strong U.S. support for Iraq debt relief was an impetus for
5106-445: Is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern . As a consequence, the original shareholders' stake in the company is generally significantly diluted in these deals and may be entirely eliminated, as is typical in a Chapter 11 bankruptcy . Agreements to swap debt for equity also often occur because companies are obliged to comply, per
5244-449: Is no reason that American taxpayers should be doing this". He wrote that reducing bank debt levels by converting debt into equity will increase confidence in the financial system. He believes that addressing bank solvency in this way would help address credit market liquidity issues. Economist Jeffrey Sachs has also argued in favor of such haircuts: "The cheaper and more equitable way would be to make shareholders and bank bondholders take
5382-469: Is often considered to be a useful skill by business owners in the United Kingdom; a 2014 study found that 50% of British managers considered French to be a valuable asset for their business, thus ranking French as the most sought-after foreign language there, ahead of German (49%) and Spanish (44%). MIT economist Albert Saiz calculated a 2.3% premium for those who have French as a foreign language in
5520-828: Is one of the official languages of such major international and regional courts, tribunals, and dispute-settlement bodies as the African Court on Human and Peoples' Rights , the Caribbean Court of Justice , the Court of Justice for the Economic Community of West African States , the Inter-American Court of Human Rights , the International Court of Justice , the International Criminal Tribunal for
5658-405: Is responsible for submitting to the debtor's delegation terms agreed upon by creditors. The Secretary general assists him in the negotiation his team prepares. If the debtor - which is common - refuses the first offer of creditors, the actual negotiation begins, the Chairman acting as a shuttle between the debtor and creditors. List of chairpersons Incomplete list: • Solidarity : All members of
Paris Club - Misplaced Pages Continue
5796-537: Is simultaneously increased. Investors can then have more confidence that the bank (and financial system more broadly) is solvent, helping unfreeze credit markets. Taxpayers do not have to contribute dollars and the government may be able to just provide guarantees in the short term to buttress confidence in the recapitalized institution. For example, Wells Fargo owed its bondholders $ 267 billion, according to its 2008 annual report. A 20% haircut would reduce this debt by about $ 54 billion, creating an equal amount of equity in
5934-576: Is taught in universities around the world, and is one of the world's most influential languages because of its wide use in the worlds of journalism, jurisprudence , education, and diplomacy. In diplomacy, French is one of the six official languages of the United Nations (and one of the UN Secretariat 's only two working languages ), one of twenty official and three procedural languages of the European Union , an official language of NATO ,
6072-553: Is the language of business and communication, with French being an element of social distinction, chosen for its emotional value. French is an official language of the Pacific Island nation of Vanuatu , where 31% of the population was estimated to speak it in 2023. In the French special collectivity of New Caledonia , 97% of the population can speak, read and write French while in French Polynesia this figure
6210-483: Is the native language of about 23% of the Swiss population, and is spoken by 50% of the population. Along with Luxembourgish and German, French is one of the three official languages of Luxembourg , where it is generally the preferred language of business as well as of the different public administrations. It is also the official language of Monaco . At a regional level, French is acknowledged as an official language in
6348-492: Is the second-most spoken language (after English) in the states of Maine and New Hampshire . In Louisiana , it is tied with Spanish for second-most spoken if Louisiana French and all creoles such as Haitian are included. French is the third most spoken language (after English and Spanish) in the states of Connecticut , Rhode Island , and New Hampshire . Louisiana is home to many distinct French dialects, collectively known as Louisiana French . New England French , essentially
6486-424: Is the sole official language in the province of Quebec , where some 80% of the population speak it as a native language and 95% are capable of conducting a conversation in it. Quebec is also home to the city of Montreal , which is the world's fourth-largest French-speaking city, by number of first language speakers. New Brunswick and Manitoba are the only officially bilingual provinces, though full bilingualism
6624-469: Is usually less expensive than bankruptcy . The main costs associated with debt restructuring are the time and effort spent negotiating with bankers, creditors, vendors, and tax authorities. In the United States, small business bankruptcy filings cost at least $ 50,000 in legal and court fees, and filing costs in excess of $ 100,000 are common. By some measures, only 20% of firms survive Chapter 11 bankruptcy filings. Historically, debt restructuring has been
6762-764: The Aosta Valley region of Italy where it is the first language of approximately 50% of the population, while French dialects remain spoken by minorities on the Channel Islands . It is also spoken in Andorra and is the main language after Catalan in El Pas de la Casa . The language is taught as the primary second language in the German state of Saarland , with French being taught from pre-school and over 43% of citizens being able to speak French. The majority of
6900-462: The Aosta Valley region of Italy; and various communities elsewhere. French is estimated to have about 310 million speakers, of which about 80 million are native speakers. According to the OIF, approximately 321 million people worldwide are "able to speak the language" as of 2022, without specifying the criteria for this estimation or whom it encompasses. In Francophone Africa, it is spoken mainly as
7038-517: The Companies' Creditors Arrangement Act , a piece of legislation first put forward and passed in 1933 and updated later in 1985. A CCAA filing allows a Canadian company to have a window in time (typically between 30 and 90 days) in which they can renegotiate and reorganize their debt payment plans with creditors. During this brief period, creditors cannot seize any money that is owed to them. These windows of time may be renewed multiple times over. Once
SECTION 50
#17327575809187176-539: The Democratic Republic of Congo . There is not a single African French , but multiple forms that diverged through contact with various indigenous African languages . Sub-Saharan Africa is the region where the French language is most likely to expand, because of the expansion of education and rapid population growth. It is also where the language has evolved the most in recent years. Some vernacular forms of French in Africa can be difficult to understand for French speakers from other countries, but written forms of
7314-485: The European Union , French was the dominant language within all institutions until the 1990s. After several enlargements of the EU (1995, 2004), French significantly lost ground in favour of English, which is more widely spoken and taught in most EU countries. French currently remains one of the three working languages, or "procedural languages", of the EU, along with English and German. It is the second-most widely used language within EU institutions after English, but remains
7452-559: The Francien dialect is one that not only continued but also thrived during the Middle French period (14th–17th centuries). Modern French grew out of this Francien dialect. Grammatically, during the period of Middle French, noun declensions were lost and there began to be standardized rules. Robert Estienne published the first Latin-French dictionary, which included information about phonetics, etymology, and grammar. Politically,
7590-877: The International Olympic Committee , the Council of Europe , the Organisation for Economic Co-operation and Development , Organization of American States (alongside Spanish, Portuguese and English), the Eurovision Song Contest , one of eighteen official languages of the European Space Agency , World Trade Organization and the least used of the three official languages in the North American Free Trade Agreement countries. It
7728-541: The London Club , which was organized in 1970 on the model of the Paris Club as an informal group of commercial banks renegotiating together the debt they hold on sovereign debtors (countries to which they extended loans) which were no longer able to repay. Creditor countries meet c. ten times a year for Tour d'Horizon and negotiating sessions. To facilitate Paris Club operations, the French Treasury provides
7866-626: The Oaths of Strasbourg and the Sequence of Saint Eulalia , while Old French literature began to be produced in the eleventh century, with major early works often focusing on the lives of saints (such as the Vie de Saint Alexis ), or wars and royal courts, notably including the Chanson de Roland , epic cycles focused on King Arthur and his court , as well as a cycle focused on William of Orange . It
8004-1012: The United Nations , the European Union, the North Atlantic Treaty Organization , the World Trade Organization , the International Olympic Committee , the General Conference on Weights and Measures , and the International Committee of the Red Cross . French is a Romance language (meaning that it is descended primarily from Vulgar Latin ) that evolved out of the Gallo-Romance dialects spoken in northern France. The language's early forms include Old French and Middle French . Due to Roman rule, Latin
8142-455: The 1990s) but these varieties are severely endangered or presumed extinct. French is one of two official languages in Haiti alongside Haitian Creole . It is the principal language of education, administration, business, and public signage and is spoken by all educated Haitians. It is also used for ceremonial events such as weddings, graduations, and church masses. The vast majority of the population speaks Haitian Creole as their first language;
8280-474: The 20th century, when it was replaced by English as the United States became the dominant global power following the Second World War . Stanley Meisler of the Los Angeles Times said that the fact that the Treaty of Versailles was written in English as well as French was the "first diplomatic blow" against the language. During the Grand Siècle (17th century), France, under the rule of powerful leaders such as Cardinal Richelieu and Louis XIV , enjoyed
8418-510: The Canadian capital, is also effectively bilingual, as it has a large population of federal government workers, who are required to offer services in both French and English, and is just across the river from the Quebecois city of Gatineau . According to the United States Census Bureau (2011), French is the fourth most spoken language in the United States after English, Spanish, and Chinese, when all forms of French are considered together and all dialects of Chinese are similarly combined. French
SECTION 60
#17327575809188556-614: The Caribbean that are collectively referred to as the French West Indies , namely Guadeloupe , Saint Barthélemy , Saint Martin , and Martinique . French is the official language of both French Guiana on the South American continent, and of Saint Pierre and Miquelon , an archipelago off the coast of Newfoundland in North America. French was the official language of the colony of French Indochina , comprising modern-day Vietnam , Laos , and Cambodia . It continues to be an administrative language in Laos and Cambodia, although its influence has waned in recent decades. In colonial Vietnam,
8694-428: The Club, and to facilitate the reaching of a consensus between them at each level of the discussions. To achieve this, the Secretariat prepares negotiating sessions according to a specific method. In the early stages of discussions, the Secretariat analyses the debtor country's payment capacity and provides creditors with a first proposal for a treatment. This proposal is discussed by the creditors (whose positions during
8832-408: The Empire, this local elite had been slowly abandoning Gaulish entirely, but the rural and lower class populations remained Gaulish speakers who could sometimes also speak Latin or Greek. The final language shift from Gaulish to Vulgar Latin among rural and lower class populations occurred later, when both they and the incoming Frankish ruler/military class adopted the Gallo-Roman Vulgar Latin speech of
8970-476: The Evian Approach. • Conditionality : The Paris Club only negotiates debt restructurings with debtor countries that: 1) need debt relief. Debtor countries are expected to provide a precise description of their economic and financial situation, 2) have implemented and are committed to implementing reforms to restore their economic and financial situation, and 3) have a demonstrated track record of implementing reforms under an IMF program. This means in practice that
9108-416: The Germanic Frankish language , which non-exhaustively included the use in upper-class speech and higher registers of V2 word order , a large percentage of the vocabulary (now at around 15% of modern French vocabulary ) including the impersonal singular pronoun on (a calque of Germanic man ), and the name of the language itself. Up until its later stages, Old French , alongside Old Occitan , maintained
9246-475: The HIPC initiative is shared by multilateral creditors (44.5%), the Paris Club (36.3%), non-Paris Club bilateral creditors (13.1%) and private creditors (6.1%). Hence, the HIPC initiative represents a genuine and significant financial effort from Paris Club member countries, especially considering that they indirectly contribute to debt relief granted by multilateral creditors, as they are major shareholders of these international financial institutions. According to
9384-541: The IMF and the World Bank, debt relief granted since the beginning of the HIPC Initiative reduced beneficiary countries’ debt burden by about 90 percent relative to pre-decision point levels . Debt relief has also allowed beneficiary countries to reduce their debt service and to increase social spending. According to the IMF and the World Bank, for the 36 post-decision point countries, poverty reducing spending increased by more than 3 percentage points of GDP, on average, between 2001 and 2010, while debt service payments declined by
9522-478: The Paris Club agree to act as a group in their dealings with a given debtor country and be sensitive to the effect that the management of their particular claims may have on the claims of other members. • Consensus : Paris Club decisions cannot be taken without a consensus among the participating creditor countries. • Information sharing : The Paris Club is a unique information-sharing forum. Paris Club members regularly share views and information with each other on
9660-421: The Paris Club's goal is to take into account debt sustainability considerations, to adapt its response to the financial situation of debtor countries, and to contribute to current efforts to ensure an orderly, timely and predictable resolution of economic and financial crises. The approach aims at providing a tailored response to debtor countries’ payment difficulties. Countries with unsustainable debt may be granted
9798-400: The Paris Forum aims at enhancing the involvement of emerging countries, be they creditors or debtors, in international debates on sovereign financing, in order to make discussions as open and frank as possible. The Paris Forum annually gathers more than thirty representatives from sovereign creditors and debtors, of which the members of the G20 , the members of the Paris Club, and countries from
9936-399: The United States are Chapter 11 and Chapter 12 bankruptcy. Under Chapter 11, firms form a plan to reorganize their credit obligations, such that they are able to continue operating while they are going through with their debt repayment plans and after they become solvent. Creditors are given promises to be paid back with firms' future earnings. The nature of these promises can be shaped in
10074-547: The accord in writing in French and in English. This agreement is drafted by the Paris Club Secretariat and then approved by the creditors and the debtor. The delegation of the debtor country then returns to the main room and the Agreed Minutes are signed by the Chairman, the minister of the debtor country and the head of delegation of each participating creditor country. A press release mutually agreed to by
10212-465: The agreement of permanent members and of the debtor country. Representatives of international institutions, notably the IMF, the World Bank and the relevant regional development bank also attend the meeting as observers. The debtor country is usually represented by the Minister of Finance. They generally lead a delegation comprising officials from the Ministry of Finance and the Central Bank. After
10350-407: The agreement of permanent members and of the debtor country. When participating in Paris Club discussions, invited creditors act in good faith and abide by the practices described below. The following creditors have participated in some Paris Club agreements or Tours d'Horizon in an ad hoc manner: Observers are invited to attend the negotiating sessions of the Paris Club but they cannot participate in
10488-450: The amount by which any resale value, when the house is resold, exceeds $ 135,000. A debt-for-equity swap may also be called a "bondholder haircut ". Bondholder haircuts at large banks were advocated as a potential solution for the subprime mortgage crisis by prominent economists: Economist Joseph Stiglitz testified that bank bailouts "are really bailouts not of the enterprises but of the shareholders and especially bondholders. There
10626-575: The common framework for debt treatment, the secretariat acts under the guidance of the co-chairs (Paris Club and G20 co-chairs) in the same technical work. Since 1956, the Presidency of the Paris Club is ensured by the French Treasury. The Chairperson of the Paris Club is Bertrand Dumont, Director-General of the Treasury. Co-Chairman is William Roos, Assistant Secretary for Multilateral Affairs, Trade and Development Policies Department. Vice-Chair
10764-414: The company's underlying cash position to become tight and the prospect of the company needing to restructure will become more obvious to creditors and the debtor alike. This triggers a gathering of creditors and other stakeholders, in anticipation of a breach of financial covenants , a crisis of liquidity , or impending debt instruments coming due that will not be able to be refinanced, all of which could be
10902-522: The country is eligible for debt cancellation. From 1956 to the late 1980s, the Paris Club opposed debt forgiveness or reduction. Instead of granting reductions, it would sometimes be willing to restructure, reschedule, or refinance. The Paris Club refers to this approach as the "classic terms." As a result of the Latin American debt crisis , the Paris Club began to gradually re-evaluate its unwillingness to provide debt forgiveness or reduction over
11040-402: The country must have a current program supported by an appropriate arrangement with the IMF (Stand-By, Extended Fund Facility, Poverty Reduction and Growth Facility, Policy Support Instrument). The level of the debt treatment is based on the financing gap identified in the IMF program. In the case of a flow treatment, the consolidation period coincides with the period when the IMF arrangement shows
11178-506: The country near French-speaking Quebec, however, it is the foreign language more commonly taught. Vowel phonemes in French Debt restructuring Replacement of old debt by new debt when not under financial distress is called " refinancing ". Out-of-court restructurings , also known as workout s , are increasingly becoming a global reality. Debt restructuring involves reduction of debt and an extension of payment terms and
11316-429: The country suffers from a liquidity problem, a debt sustainability problem, or both. If the IMF determines that the country suffers from a temporary liquidity problem, its debts are rescheduled until a later date. If the country is also determined to suffer from debt sustainability problems, where it lacks the long-term resources to meet its debt obligations and the amount of debt adversely affects its future ability to pay,
11454-477: The course of the 1980s. By the late 1980s, the Paris Club concluded that it was not possible to avoid a vicious cycle of debt without a willingness on the Paris Club's part to write-off non-performing loans. In 1988, the Paris Club agreed to its first partial debt reduction pursuant to its "Toronto terms". The level of reduction was defined as 33.33%. Twenty countries benefited from Toronto terms between 1988 and 1991. In December 1991, creditors decided to increase
11592-508: The creation of the new approach. Instead of using economic indicators to determine eligibility for debt relief, all potential debt relief cases are now divided into two groups: HIPC and non-HIPC countries. HIPC countries will continue to receive assistance under Cologne terms, which sanction up to 90% debt cancellation. Non-HIPC countries are assessed on a case-by-case basis. Non-HIPC countries seeking debt relief first undergo an IMF debt sustainability analysis . This analysis determines whether
11730-406: The creditors and the debtor country representatives is released for publication upon completion of the negotiation session. On 8 October 2003, Paris Club members announced a new approach that would allow the Paris Club to provide debt cancellation to a broader group of countries. The new approach, named the “Evian Approach” introduces a new strategy for determining Paris Club debt relief levels that
11868-443: The creditors' votes set in proportion to how much they are owed, and 50% plus one of all creditors votes in terms of number of creditors. On top of such democratic approval, the court itself has to approve how the debts get restructured. Withstanding all such approval, a business or individual can continue operating as normal; otherwise, a business or individual is obliged to proceed into bankruptcy filing. CCAA filings were created by
12006-578: The debt issues more broadly. The session may also include negotiation meetings with one or more debtor countries. A debtor country is invited to a negotiation meeting with its Paris Club creditors when it has concluded an appropriate programme with the International Monetary Fund (IMF) that demonstrates that the country is not able to meet its external debt obligations and thus needs a new payment arrangement with its external creditors (conditionality principle). Paris Club creditors link
12144-515: The debt restructuring to the IMF programme because the economic policy reforms are intended to restore a sound macroeconomic framework that will lower the probability of future financial difficulties. The twenty two permanent members of the Paris Club may participate in the negotiation meetings, as participating creditors if they have claims towards the invited debtor country, as observers if not. Other official bilateral creditors may be invited to attend negotiation meetings on an ad-hoc basis, subject to
12282-655: The debt situation of a number of very poor countries, of which three quarters are located in sub-Saharan Africa remained extremely difficult, even after having used traditional mechanisms. A group of 39 countries were identified as being potentially eligible for the Heavily Indebted Poor Countries HIPCs. Since the start of the HIPC initiative, debt relief granted to the 36 post-decision point countries at end-2011 amounts to almost 35 percent of these countries’ 2010 GDP, around US$ 128 Bn in nominal terms . The total debt relief effort provided under
12420-436: The debtor client (not as a debt collection agency ) and should charge fees based on success. Among the debt situations that can be worked out in business-to-business debt mediation are: lawsuits and judgments, delinquent property, machinery, equipment rentals/leases, business loans or mortgage on business property, capital payments due for improvements/construction, invoices and statements, disputed bills and problem debts. In
12558-419: The debtor country. If the debtor country disagrees and asks for amendments to the creditors' proposal, the chairman will then convey this request to the creditors, who discuss it and consider a new proposal. This process continues until a common agreement between creditors and the debtor country is reached. Once an agreement is reached on the terms of the treatment, a document called the Agreed Minutes formalizes
12696-413: The debtor, or for a liquidation of certain debtor's assets to repay privileged creditors. While being famous for its efficiency in other matter, this is not true for debt restructuring. Many German companies prefer to restructure their debts using the English scheme of arrangement proceedings because they believe that the German restructuring law is not very helpful. The main reason for this is that binding
12834-519: The demographic prospects of the French-speaking nations of Africa, researcher Pascal-Emmanuel Gobry wrote in 2014 that French "could be the language of the future". However, some African countries such as Algeria intermittently attempted to eradicate the use of French, and as of 2024 it was removed as an official language in Mali and Burkina Faso . Significant as a judicial language, French
12972-1059: The different regions of the world. 2024 Paris Forum The eleventh edition of the Paris Forum was held on 26 June in Paris, and was organized by the Paris Club and the Brazilian Presidency of the G20. It gathered 200+ participants representing 80 countries and institutions and was introduced by Vice-minister Tatiana Rosito from Brazil, Vice-minister Liao Min from China, IMF First Deputy Managing Director Gita Gopinath, Minister of Finance of Qatar Ali bin Ahmed Al Kuwari and Ambassador of Germany in France Stephan Steinlein. French language French ( français [fʁɑ̃sɛ] or langue française [lɑ̃ɡ fʁɑ̃sɛːz] )
13110-448: The economic power of the countries using the language, the number of major areas in which the language is used, and the linguistic prestige associated with the mastery of the language (Weber highlighted that French in particular enjoys considerable linguistic prestige). In a 2008 reassessment of his article, Weber concluded that his findings were still correct since "the situation among the top ten remains unchanged." Knowledge of French
13248-594: The elites primarily spoke French, while many servants who worked in French households spoke a French pidgin known as " Tây Bồi " (now extinct). After French rule ended, South Vietnam continued to use French in administration, education, and trade. However, since the Fall of Saigon and the opening of a unified Vietnam's economy, French has gradually been effectively displaced as the first foreign language of choice by English in Vietnam. Nevertheless, it continues to be taught as
13386-407: The event that the stipulations within the proposal get voted down by creditors or not signed off by the court, one falls into bankruptcy. Division 1 proposals allow companies to be briefly relieved of lawsuits by creditors, as well as they allow companies to stop paying money to their unsecured creditors while the proposal is being reviewed. A Division 1 Proposal to restructure debts must secure 66% of
13524-516: The first government authority to adopt Modern French as official was the Aosta Valley in 1536, while the Ordinance of Villers-Cotterêts (1539) named French the language of law in the Kingdom of France . During the 17th century, French replaced Latin as the most important language of diplomacy and international relations ( lingua franca ). It retained this role until approximately the middle of
13662-915: The former Yugoslavia , International Criminal Tribunal for Rwanda , the International Tribunal for the Law of the Sea the International Criminal Court and the World Trade Organization Appellate Body . It is the sole internal working language of the Court of Justice of the European Union , and makes with English the European Court of Human Rights 's two working languages. In 1997, George Weber published, in Language Today ,
13800-829: The gender of the corresponding word in Gaulish. The estimated number of French words that can be attributed to Gaulish is placed at 154 by the Petit Robert , which is often viewed as representing standardized French, while if non-standard dialects are included, the number increases to 240. Known Gaulish loans are skewed toward certain semantic fields, such as plant life ( chêne , bille , etc.), animals ( mouton , cheval , etc.), nature ( boue , etc.), domestic activities (ex. berceau ), farming and rural units of measure ( arpent , lieue , borne , boisseau ), weapons, and products traded regionally rather than further afield. This semantic distribution has been attributed to peasants being
13938-620: The global evolutions in terms of sovereign financing and on the prevention and resolution of sovereign debt crises. As international financial markets and capital flows are increasingly integrated, non-Paris Club official bilateral creditors are representing a larger share in the financing of developing and emerging countries. The objective of the Forum, in this context, is to foster close and regular dialogue between stakeholders, in order to create an international financial environment favorable to sustainable growth in developing countries. In particular,
14076-432: The hit rather than the taxpayer. The Fed and other bank regulators would insist that bad loans be written down on the books. Bondholders would take haircuts, but these losses are already priced into deeply discounted bond prices." If the key issue is bank solvency, converting debt to equity via bondholder haircuts presents an elegant solution to the problem. Not only is debt reduced along with interest payments, but equity
14214-411: The impetus for a bankruptcy taking place if not rectified. The lending group (typically comprising corporate finance divisions of banks) will normally commission a corporate advisory group to review the business and its financial position. This will form the basis of any restructuring of facilities. The lending group will typically appoint a Corporate Restructuring Officer (CRO) to assist management in
14352-454: The language are very closely related to those of the rest of the French-speaking world. French is the second most commonly spoken language in Canada and one of two federal official languages alongside English. As of the 2021 Canadian census , it was the native language of 7.7 million people (21% of the population) and the second language of 2.9 million (8% of the population). French
14490-479: The language, although it has now given way to Tamil and English. A former French mandate , Lebanon designates Arabic as the sole official language, while a special law regulates cases when French can be publicly used. Article 11 of Lebanon's Constitution states that "Arabic is the official national language. A law determines the cases in which the French language is to be used". The French language in Lebanon
14628-612: The language. The Act applies to areas of the province where there are significant Francophone communities, namely Eastern Ontario and Northern Ontario . Elsewhere, sizable French-speaking minorities are found in southern Manitoba, Nova Scotia , Prince Edward Island and the Port au Port Peninsula in Newfoundland and Labrador, where the unique Newfoundland French dialect was historically spoken. Smaller pockets of French speakers exist in all other provinces. The Ontarian city of Ottawa ,
14766-479: The last to hold onto Gaulish. The beginning of French in Gaul was greatly influenced by Germanic invasions into the country. These invasions had the greatest impact on the northern part of the country and on the language there. A language divide began to grow across the country. The population in the north spoke langue d'oïl while the population in the south spoke langue d'oc . Langue d'oïl grew into what
14904-578: The level of cancellation of 33.33% as defined in Toronto, to 50% under the "London terms". These agreements benefited to 23 countries. Going even further, in December 1994, creditors decided to implement a new treatment called "Naples terms", which can be implemented on a case by case basis. Thus, for the poorest and most indebted countries, the level of cancellation of eligible credit is increased to 50% or even 67% (as of September 1999, all treatments carry
15042-409: The minister regarding the situation in the debtor country. After responding to any questions, the delegation of the debtor country then leaves the main room and stays in another room during the entire session. Creditors then discuss among themselves a proposed debt treatment. Once creditors agree on a treatment, the chairman of the meeting will then present this proposed treatment to the delegation of
15180-404: The most expensive and complicated forms of bankruptcy to file. The vast majority of Chapter 11 bankruptcy cases filed end up allowing company management to go forward running the business as usual; however, in certain exceptional cases (fraud, gross incompetence, etc.) the courts do not allow the business the privilege of simply maintaining a " debtor in possession " status. In said cases, a trustee
15318-420: The necessity and means to annihilate the patois and to universalize the use of the French language". When public education was made compulsory , only French was taught and the use of any other ( patois ) language was punished. The goals of the public school system were made especially clear to the French-speaking teachers sent to teach students in regions such as Occitania and Brittany . Instructions given by
15456-423: The negotiation are transcribed in the so-called "magic table"). The Secretariat is also responsible for drafting the minutes of negotiation. The Secretariat also helps to ensure compliance with the various covenants contained in the minutes and maintains external relations with third States creditors and commercial banks, in particular to ensure the greatest possible respect of comparability clause treatment. Under
15594-538: The negotiation itself, nor sign the agreement that formalizes the result of negotiation. There are three categories of observers: The Secretariat was established to prepare more effective negotiating sessions. The Secretariat is composed of a dozen people from the French Directorate General of the Treasury, it is led by a Secretary general. The Secretariat's role is primarily to safeguard the common interests of creditor countries participating in
15732-589: The official use or teaching of French. It is spoken as a first language (in descending order of the number of speakers) in France; Canada (especially in the provinces of Quebec, Ontario, and New Brunswick); Belgium ( Wallonia and the Brussels-Capital Region ); western Switzerland (specifically the cantons forming the Romandy region); parts of Luxembourg; parts of the United States (the states of Louisiana, Maine, New Hampshire, and Vermont); Monaco;
15870-534: The other main foreign language in the Vietnamese educational system and is regarded as a cultural language. All three countries are full members of La Francophonie (OIF). French was the official language of French India , consisting of the geographically separate enclaves referred to as Puducherry . It continued to be an official language of the territory even after its cession to India in 1956 until 1965. A small number of older locals still retain knowledge of
16008-728: The payments you agree. If you do fall behind with the payments and the enforcement officer has seized goods, they may remove them to the sale room for auction. Subchapter V in the US was created in 2019 by the Small Business Reorganization Act (SBRA). It offers accelerated deadlines and the speed with which the plan is confirmed reduces cost. Congress temporarily increased the ceiling of maximum funded debt eligibility to $ 7.5mm during COVID-19, and extended it in 2022. Two common avenues for restructuring debt exist in Canada:
16146-471: The preferred language of certain institutions or administrations such as the Court of Justice of the European Union , where it is the sole internal working language, or the Directorate-General for Agriculture . Since 2016, Brexit has rekindled discussions on whether or not French should again hold greater role within the institutions of the European Union. A leading world language , French
16284-466: The process, thereby recapitalizing the bank significantly. Most defendants who cannot pay the enforcement officer in full at once enter into negotiations with the officer to pay by installments. This process is informal but cheaper and quicker than an application to the court. Payment by this method relies on the cooperation of the creditor and the enforcement officer. It is therefore important not to offer more than you can afford or to fall behind with
16422-564: The province of large corporations with financial wherewithal. In the Great Recession that began with the financial crisis of 2007–08 , a component of debt restructuring called debt mediation emerged for small businesses (with revenues under $ 5 million). Like debt restructuring, debt mediation is a business-to-business activity and should not be considered the same as individual debt reduction involving credit cards , unpaid taxes, and defaulted mortgages. In 2010 debt mediation has become
16560-532: The purpose of evading the costly legal fees associated with Chapter 11. The decision as to whether to enter a workout or take the issue into court is, in large a part, a function of the creditors' and debtors' respective perceptions of how much can be gained or lost through a Chapter 11 proceeding. Creditors know that once Chapter 11 has commenced, a degree of negotiating leverage is lost, as judicial authorities may impose alterations of claims without regard to creditors' consent. On numerous occasions, merely throwing out
16698-471: The rest largely speak French as a first language. As a French Creole language , Haitian Creole draws the large majority of its vocabulary from French, with influences from West African languages, as well as several European languages. It is closely related to Louisiana Creole and the creole from the Lesser Antilles . French is the sole official language of all the overseas territories of France in
16836-448: The reviews of the IMF program. • Comparability of treatment : the Paris Club requires that debtor countries obtaining Paris Club relief not offer better terms to non-Paris Club bilateral creditors. Paris Club creditor countries generally meet 10 times per year. Each session includes a one-day meeting called a “Tour d'Horizon” during which Paris Club creditors discuss debt situations of debtor countries, or methodological issues regarding
16974-413: The situation of debtor countries, benefit from participation by the IMF and World Bank, and share data on their claims on a reciprocal basis. In order for discussions to remain productive, deliberations are kept confidential. • Case by case : The Paris Club makes decisions on a case-by-case basis in order to tailor its action to each debtor country's individual situation. This principle was consolidated by
17112-425: The terms of a contract with certain lending institutions, with specified debt to equity ratios . Debt-for-equity swaps are one way of dealing with sub-prime mortgages. A householder unable to service his debt on a $ 180,000 mortgage for example, may by agreement with his bank have the value of the mortgage reduced (say to $ 135,000 or 75% of the house's current value), in return for which the bank will receive 50% of
17250-571: The threat of filing bankruptcy has initiated the process of coming to a private agreement. Debt restructuring within Italy may occur either out of court (ex article 167 of the Italian Bankruptcy Law) when a waiver or simple debt rescheduling is required, or through a court-mediated debt restructuring agreement (ex article 182/bis of the Italian Bankruptcy Law) and may provide for a partial waiver of debts, mandatory recapitalization of
17388-466: The total number of French speakers will reach approximately 500 million in 2025 and 650 million by 2050, largely due to rapid population growth in sub-Saharan Africa . OIF estimates 700 million French speakers by 2050, 80% of whom will be in Africa. In a study published in March 2014 by Forbes , the investment bank Natixis said that French could become the world's most spoken language by 2050. In
17526-679: The two official languages—along with Dutch —of the Brussels-Capital Region , where it is spoken by the majority of the population (approx. 80%), often as their primary language. French is one of the four official languages of Switzerland, along with German, Italian, and Romansh , and is spoken in the western part of Switzerland, called Romandy , of which Geneva is the largest city. The language divisions in Switzerland do not coincide with political subdivisions, and some cantons have bilingual status: for example, cities such as Biel/Bienne and cantons such as Valais , Fribourg and Bern . French
17664-508: The urban intellectual elite. The Gaulish language likely survived into the sixth century in France despite considerable Romanization . Coexisting with Latin, Gaulish helped shape the Vulgar Latin dialects that developed into French contributing loanwords and calques (including oui , the word for "yes"), sound changes shaped by Gaulish influence, and influences in conjugation and word order. Recent computational studies suggest that early gender shifts may have been motivated by
17802-485: The use of French in official government publications, public education except in specific cases, and legal contracts; advertisements must bear a translation of foreign words. In Belgium, French is an official language at the federal level along with Dutch and German. At the regional level, French is the sole official language of Wallonia (excluding a part of the East Cantons , which are German-speaking ) and one of
17940-536: The workplace. In 2011, Bloomberg Businessweek ranked French the third most useful language for business, after English and Standard Mandarin Chinese . In English-speaking Canada, the United Kingdom, and Ireland, French is the first foreign language taught and in number of pupils is far ahead of other languages. In the United States, French is the second-most commonly taught foreign language in schools and universities, although well behind Spanish. In some areas of
18078-402: The world's French-speaking population lives in Africa. According to a 2023 estimate from the Organisation internationale de la Francophonie , an estimated 167 million African people spread across 35 countries and territories can speak French as either a first or a second language . This number does not include the people living in non-Francophone African countries who have learned French as
18216-417: Was also influenced by native Celtic languages of Northern Roman Gaul like Gallia Belgica and by the ( Germanic ) Frankish language of the post-Roman Frankish invaders. Today, owing to the French colonial empire , there are numerous French-based creole languages , most notably Haitian Creole . A French-speaking person or nation may be referred to as Francophone in both English and French. French
18354-819: Was during the period of the Crusades in which French became so dominant in the Mediterranean Sea that became a lingua franca ("Frankish language"), and because of increased contact with the Arabs during the Crusades who referred to them as Franj , numerous Arabic loanwords entered French, such as amiral (admiral), alcool (alcohol), coton (cotton) and sirop (syrop), as well as scientific terms such as algébre (algebra), alchimie (alchemy) and zéro (zero). Within Old French many dialects emerged but
18492-400: Was gradually adopted by the inhabitants of Gaul. As the language was learned by the common people, it developed a distinct local character, with grammatical differences from Latin as spoken elsewhere, some of which is attested in graffiti. This local variety evolved into the Gallo-Romance tongues, which include French and its closest relatives, such as Arpitan . The evolution of Latin in Gaul
18630-652: Was known in the Occitan-speaking region as Vergonha . Spoken by 19.71% of the European Union's population, French is the third most widely spoken language in the EU, after English and German and the second-most-widely taught language after English. Under the Constitution of France , French has been the official language of the Republic since 1992, although the Ordinance of Villers-Cotterêts made it mandatory for legal documents in 1539. France mandates
18768-511: Was mainly of use to individuals attempting to restructure very small debts. Farms and fisheries, being midsize and seasonal in nature, were thus in need of a more flexible legal framework through which they could restructure their debts. Firms in the United States are not limited to only using the legal system to manage debts they are incapable of repaying. Out-of-court restructuring, or workouts, constitute consensual agreements between firms and their creditors to adjust debt obligations, mainly for
18906-594: Was shaped by its coexistence for over half a millennium beside the native Celtic Gaulish language , which did not go extinct until the late sixth century, long after the fall of the Western Roman Empire . The population remained 90% indigenous in origin; the Romanizing class were the local native elite (not Roman settlers), whose children learned Latin in Roman schools. At the time of the collapse of
19044-570: Was the language they use the most at home rose from 67% at the 2007 census to 74% at the 2017 census. In Wallis and Futuna, the percentage of the population who reported that French was the language they use the most at home rose from 10% at the 2008 census to 13% at the 2018 census. According to a demographic projection led by the Université Laval and the Réseau Démographie de l'Agence universitaire de la Francophonie ,
#917082