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VIDEO: What is the Paris Club?

The Paris Club, comprising 22 wealthy countries, provides a platform for governments facing financial difficulties to reduce and renegotiate their debt repayments.

Formed in 1956, it has signed more than 400 agreements to date, worth more than half a trillion dollars to about 100 countries.

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As public debt soars in the wake of the pandemic, CNBC breaks down how this exclusive club functions and the challenges it faces to stay relevant.

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