Official Creditor Committee
Also called: OCC · Topic: Balance of Payments and Exchange Rates · NCERT: Beyond NCERT
Meaning
An Official Creditor Committee (OCC) is a group of bilateral government creditors, meaning governments that have lent to a country. They join together to negotiate one common restructuring with a country that has defaulted. Acting jointly makes the talks faster and the relief fairer, because each creditor offers similar terms. An OCC is formed for a particular case, and it can bring together creditors from outside the Paris Club.
Example
After Sri Lanka defaulted in 2022, India, Japan and France co-chaired its OCC. India had also given about US$4 bn in bridge support through credit lines, swaps and deferrals. China, which is not in the Paris Club, negotiated separately.
Don't confuse with
- Paris Club: this is a standing group of creditor governments. An OCC is set up for one debtor's restructuring and can include lenders from outside the Paris Club.
Related concepts
- External debt
- Debt service ratio
- Sovereign credit rating
- Sovereign default
- Sovereign debt restructuring
- Comparability of treatment
- Debt-for-nature swap
- Blended finance