Public Information Notice: IMF Executive Board Discusses The Challenge of Maintaining Long-Term External Debt Sustainability of HIPCs
May 04, 2001

Debt Initiative for the Heavily Indebted Poor Countries (HIPCs)
A Factsheet

The Challenge of Maintaining Long-Term External Debt Sustainability

Prepared by the Staffs of the World Bank and the
International Monetary Fund

April 20, 2001
Use the free Adobe Acrobat Reader to view the full text of this 1,220 kb pdf file.

Contents

Executive Summary

  1. Introduction
     
  2. Key Aspects of Maintaining External Debt Sustainability

      A. Increasing Economic Growth on a Sustainable Basis
      B. Reducing Export Vulnerability
      C. Increasing the Availability and Efficiency of
           External Capital

          Additionality
          Concessionality
          Transparency

  3. External Debt Sustainability Issues and the Enhanced
    HIPC Initiative
      A. HIPC Debt Relief as the Basis for Debt Sustainability
      B. Debt-to-Exports Profiles and Sensitivity to Projections of
             Exports and New Borrowing
      C. Current Approach Towards Debt Relief

Text Boxes

  1. Debt Indicators under the HIPC Initiative
  2. Export Growth and Export Volatility in HIPCs and other
        Developing Countries
  3. Resource Flows to 22 HIPCs, 1980-1999
  4. Profile of the Net Present Value of Debt

Figures

 
1a.
   NPV of Debt-to-Exports Ratios for After Enhanced HIPC
   Initiative Assistance
 
1b.
   NPV of Debt-to-Revenues Ratios for After Enhanced HIPC
   Initiative Assistance
 
2.
   NPV of Debt-to-Exports Ratios projected in 2010 for 22 HIPCs
 
3.
   NPV of Debt-to-Exports Ratio for HIPC at the Decision Point:
  Projections and Past Export Trends
 
   
Text Tables
 
1.
   HIPCs Trade Shares, 1970-97
 
2.
   Debt Indicators in Developing Countries and HIPCs in 1999
 
3.
   Additional Bilateral ODA Forgiveness and its Impact on the
   NPV of Debt-to-Export Ratio
 
4.
   Debt Service Indicators for HIPCs that Have Reached a
  Decision Point, 1998-2003
 
5.
   HIPCs that Have Reached a Decision Point
   Main Assumptions in Projections of External Debt Indicators
 
   
Annex Tables
 
1.
   HIPC Initiative: Summary Vulnerability Indicators for 22 HIPCs
   Having Reached a Decision Point
  2.   Debt Relief Committed under the HIPC Initiative
  3a.   HIPCs that have Reached a Decision Point:
  NPV of Debt-to-Exports Ratio
  3b.   NPV of Debt-to-Exports Ratio, Assuming Hypothetical Delivery
  of Assistance at the Reference year
  3c.   NPV of Debt-to-Exports Ratio of Existing Debt, Assuming
   Hypothetical Delivery of Assistance at the Reference year
  4.   HIPCs that have Reached a Decision Point: NPV of
   Debt-to-Revenue Ratio
  5.   HIPCs that have Reached a Decision Point: NPV of
   Debt-to-GDP Ratio
  6.   HIPCs that have Reached a Decision Point: Debt
   Service-to-Exports Ratio
  7.   HIPCs that have Reached a Decision Point: Debt
   Service-to-Revenue Ratio
  8.   HIPCs that have Reached a Decision Point: Flows of Official
   External Resources
  9.   Sensitivity Analysis of New Borrowing Assumptions
       

Appendices

  I.   The Incidence of Rescheduling Compared to Debt-to-Exports
   Ratios
  II.   Debt Management Issues in HIPCs
  III.   Borrowing Limits in IMF Arrangements