{
  "title": "Debt Relief for Low-Income Countries and the HIPC Initiative",
  "publication": "IMF Working Papers, March 1, 1997",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/debt-relief-for-low-income-countries-and-the-hipc-initiative-2133",
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  "summary": "The paper describes the debt burden of low-income countries and the traditional mechanisms that have been implemented by the international community to alleviate this burden.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper describes the debt burden of low-income countries and the traditional mechanisms implemented by the international community to alleviate this burden.\n- While these mechanisms are sufficient to reduce the external debts of many heavily indebted poor countries (HIPCs) to sustainable levels—provided these countries implement sound economic policies—they are likely insufficient for a number of countries.\n- To deal with these cases, the World Bank and the IMF have jointly proposed and implemented the Heavily Indebted Poor Countries (HIPC) Initiative.\n- The paper describes the HIPC Initiative and suggests that it should enable HIPCs to exit from the debt rescheduling process."
    },
    {
      "heading": "Findings on debt burden and traditional mechanisms",
      "content": "- Traditional international mechanisms can reduce external debts to sustainable levels for many HIPCs conditional on sound economic policies.\n- A subset of HIPCs face debt burdens that are likely insufficiently addressed by traditional mechanisms alone, necessitating additional measures."
    },
    {
      "heading": "HIPC Initiative: purpose and expected effect",
      "content": "- Jointly proposed and implemented by the World Bank and the IMF.\n- Intended to deal with HIPCs whose debts remain unsustainable after traditional mechanisms.\n- Suggested outcome: enable HIPCs to exit from the debt rescheduling process."
    },
    {
      "heading": "Subject areas and keywords (as presented)",
      "content": "- Subject: Asset and liability management, Debt burden, Debt reduction, Debt relief, Debt service, External debt\n- Keywords: Debt burden, debt problem, Debt reduction, debt reduction option, Debt relief, Debt service, debt service due, debt-service difficulty, debt-service reduction, debt-service reduction option, debt-servicing difficulty, debtor country, External Debt, Heavily Indebted Poor Countries Initiative, HIPCs debt-management capacity, IBRD debt, IDA debt-reduction operation, net present value, NPV reduction, right, Sub-Saharan Africa, WP\n\n---\n\n Content in this bundle\n\n- Debt Relief for Low-Income Countries and the HIPC Initiative - WP/97/24\n  - Debt Relief for Low-Income Countries and the HIPC Initiative - WP/97/24 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Debt Relief for Low-Income Countries and the HIPC Initiative - WP/97/24 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/debt-relief-for-low-income-countries-and-the-hipc-initiative-2133"
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    "Authors: Kamau Thugge, Anthony R. Boote",
    "Published: March 1, 1997",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451844108.001",
    "The paper describes the debt burden of low-income countries and the traditional mechanisms implemented by the international community to alleviate this burden.",
    "While these mechanisms are sufficient to reduce the external debts of many heavily indebted poor countries (HIPCs) to sustainable levels—provided these countries implement sound economic policies—they are likely insufficient for a number of countries.",
    "To deal with these cases, the World Bank and the IMF have jointly proposed and implemented the Heavily Indebted Poor Countries (HIPC) Initiative.",
    "The paper describes the HIPC Initiative and suggests that it should enable HIPCs to exit from the debt rescheduling process.",
    "Traditional international mechanisms can reduce external debts to sustainable levels for many HIPCs conditional on sound economic policies.",
    "A subset of HIPCs face debt burdens that are likely insufficiently addressed by traditional mechanisms alone, necessitating additional measures.",
    "Jointly proposed and implemented by the World Bank and the IMF.",
    "Intended to deal with HIPCs whose debts remain unsustainable after traditional mechanisms.",
    "Suggested outcome: enable HIPCs to exit from the debt rescheduling process.",
    "Subject: Asset and liability management, Debt burden, Debt reduction, Debt relief, Debt service, External debt",
    "Keywords: Debt burden, debt problem, Debt reduction, debt reduction option, Debt relief, Debt service, debt service due, debt-service difficulty, debt-service reduction, debt-service reduction option, debt-servicing difficulty, debtor country, External Debt, Heavily Indebted Poor Countries Initiative, HIPCs debt-management capacity, IBRD debt, IDA debt-reduction operation, net present value, NPV reduction, right, Sub-Saharan Africa, WP",
    "**Debt Relief for Low-Income Countries and the HIPC Initiative - WP/97/24**"
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