Debt Relief Under the HIPC Initiative: Context and Outlook for Debt Sustainability and Resource Flow

September 1, 2001

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Doris C Ross, and Lisandro Abrego. Debt Relief Under the HIPC Initiative: Context and Outlook for Debt Sustainability and Resource Flow, (USA: International Monetary Fund, 2001) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper discusses the Heavily Indebted Poor Countries (HIPC) Initiative in the perspective of sizable historical debt relief and large positive net resource flows to HIPCs. It argues that, by substantially reducing HIPCs’ debt stocks and debt service payments, the Initiative provides a solid basis for debt sustainability and room for increased social spending. For poverty reduction, HIPC relief is important but broader international support is needed. The paper maintains that, as experience has shown, external support can be effective only if it reinforces sound policies implemented by HIPCs themselves. Thus, debt relief and official development assistance are critical as “help for self-help.”

Subject: Asset and liability management, Debt reduction, Debt relief, Debt service, Debt service payments, External debt, Poverty, Poverty reduction strategy

Keywords: B. debt relief, Country document, Debt buyback, Debt forgiveness, Debt indicator, Debt reduction, Debt relief, Debt service, Debt service payment, Debt service payments, External debt sustainability, Global, HIPC country document, HIPC document, HIPC government guarantee, HIPC Initiative, HIPC relief, Net present value, Poverty reduction, Poverty reduction strategy, Resource flow, WP

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/144
Stock No:

WPIEA1442001
ISBN:

9781451856446
ISSN:

1018-5941

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