Discussions are underway at G-20 summit in Shanghai to grant the world's second largest economy membership to the Paris Club, an informal association of creditors that specialize in loans to governments, ministers and finance officials.

The ministers said China -- along with Brazil and South Korea -- are being considered for entry into the lending club, which is noted mainly for seeking solutions to the payment problems confronted by debtor countries.

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Speaking to reporters in Hong Kong, French finance minister Michel Sapin said China would be a welcome addition to the club, which is currently seeking an expansion of its membership.

Transparency and Disclosure

"Obviously, when I say that it's necessary for the Paris Club to go through an enlargement, I'm thinking about China," Sapin told the South China Morning Post.

The club currently includes Australia, Austria, Belgium, the UK, Canada, Denmark, Finland, France, Germany, Ireland, Japan, the Netherlands, Norway, Russia, Spain, Sweden, Switzerland and the US.  

Sapin acknowledged the club's rules on transparency and the forthright disclosure of information could be seen as an issue for Beijing.

"The membership of the Paris Club requires that members respect a certain number of rules," said Sapin, adding that the organization would not water down its regulations to accommodate China. "I don't see why we need to slacken these rules," he said. "We just have to share these rules."

Japanese finance minister Taro Aso on Saturday voiced his support for the inclusion of China in the organization, but echoed Sapin's view concerning the club's rules.

Another Milestone

"Regarding China and Korea joining the Paris Club, we would welcome that if they want to join," the Japanese official told Bloomberg on Saturday. "It's a club of creditors, so it would be good. That doesn't mean we should lower conditions, but they should join under current conditions."

While Chinese finance minister Lou Jiwei has downplayed talk of China's inclusion into the organization, analysts agree that membership into the Paris Club would constitute another milestone for the country's bid for stronger presence in the international community.

The country's currency, the yuan, is scheduled to join the the US dollar, the EU euro, the British pound and the Japanese yen in the International Monetary Fund's reserve currency basket this year.

The Paris Club was established in 1956 in France, and has given some $556 billion in loan to 90 developing and emerging market countries throughout the world.

TagsParis Club, G-20 Summit, China currency