Press Release: IMF to Extend 100 Percent Debt Relief for 19 Countries Under the Multilateral Debt Relief Initiative

IMF News, December 21, 2005

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Canonical URL: Press Release: IMF to Extend 100 Percent Debt Relief for 19 Countries Under the Multilateral Debt Relief Initiative

Press Release No. 05/286
Date: December 21, 2005
The Executive Board of the International Monetary Fund (IMF) completed the assessment of the first group of countries eligible for relief under the Multilateral Debt Relief Initiative (MDRI).
Managing Director Mr. Rodrigo de Rato announced that the IMF will grant 100 percent debt relief to 19 countries under the MDRI (including remaining HIPC assistance).

Total amount of relief: SDR 2.3 billion (about US$ 3.3 billion).
The 19 countries "should receive this debt relief in early 2006."
The MDRI proposal was first made in June 2005; delivering this phase of debt relief took "just six months."

Purpose: allow recipient countries to increase spending in priority areas to reduce poverty, promote growth, and to make progress towards achieving the Millennium Development Goals.
The announcement frames this action as "an historic moment" and the "first phase" of countries to receive 100 percent debt relief under the MDRI.

For the debt relief to take effect, the IMF still needs consents from some contributors to the PRGF Trust Subsidy Account, which is one of the sources of financing for MDRI resources for debt relief.
Mr. de Rato urged donors who have not yet provided their consents to do so "as quickly as possible."
The IMF indicated there are other countries also eligible and at various stages on the road to qualification for MDRI relief; the IMF looks forward to assisting them as they continue to make progress.

"I am delighted to announce that the IMF will grant 100 percent debt relief to 19 countries under the MDRI (including remaining HIPC assistance) amounting to SDR 2.3 billion (about US$ 3.3 billion). This is an historic moment, which will allow these countries to increase spending in priority areas to reduce poverty, promote growth, and to make progress towards achieving the Millennium Development Goals. These countries should receive this debt relief in early 2006."
"Bringing the MDRI to this stage since it was proposed in June 2005 has taken an intensive effort. I am proud of what the IMF has achieved in delivering debt relief in just six months."
"For this debt relief to take effect, the IMF still needs consents from some contributors to the PRGF Trust Subsidy Account, which is one of the sources of financing for MDRI resources for debt relief, and I urge the donors who have not yet done so to provide their consents as quickly as possible."

International Monetary Fund — Press Release No. 05/286, December 21, 2005.