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Brazil, struggling with soaring debt, joins Paris Club of creditors
November 28, 2016 / 11:05 PM / a year ago

Brazil, struggling with soaring debt, joins Paris Club of creditors

SAO PAULO, Nov 28 (Reuters) - Brazil, currently struggling with a record budget deficit and ballooning public debt, will join the Paris Club of wealthy creditors, becoming the first large emerging market country to enter the group in 20 years.

In a Monday statement, the Finance Ministry said the country’s formal adhesion to the Paris Club will take place soon. The invitation to join came from a statement of the G20 group of nations taking place in the Chinese city of Hangzhou.

For Brazil, becoming a full member of the Paris Club comes as Latin America’s largest economy wrestles with the harshest recession in eight decades and a fiscal crisis that led to the loss of investment-grade ratings over the past year.

The Paris Club, which was created in 1956, helps provide repayment solutions to developing nations with chronic debt problems. Permanent members, which with Brazil will total 22, include the United States, the United Kingdom, France, Finland, Israel, Russia and Spain. (Reporting by Guillermo Parra-Bernal; Editing by Sandra Maler)

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