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Developing Countries: Status of the Heavily Indebted Poor Countries Debt Relief Initiative
Harold J. Johnson. In 1996 the World Bank & the International Monetary Fund, in response to a call from the leaders of the major industrial nations for a comprehensive approach to the debt problems of the poorest countries, proposed the Heavily Indebted Poor Countries (HIPC) Debt Initiative. The initiative reflects concerns of creditors, including the U.S., that, even after receiving debt relief through existing mechanisms, some poor countries will have debt burdens that remain too large relative to their ability to pay. This report: (1) describes the implementation of the HIPC initiative & (2) assesses the initiative’s potential to achieve its stated goal. Charts & tables.
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