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Ms. Christina Daseking and Mr. Robert Powell
The low-income country debt crisis had its origins in weak macroeconomic policies, and official creditors’ willingness to take risks unacceptable to private lenders. Payments problems were initially addressed through nonconcessional reschedulings and new lending that maximized financing while containing the budgetary costs for creditors. This led to an unsustainable buildup in debt stocks. More recently, debt ratios have improved, reflecting both adjustment and substantial debt relief. The paper estimates debt relief initiatives since 1988 have cost creditors at least $30 billion, and possibly much more. This compares with the estimated costs of about $27 billion under the enhanced HIPC Initiative.
Ms. Christina Daseking and Mr. Robert Powell

, rescheduled, or temporarily deferred; and (ii) as a reduction in the present value of the debt outstanding. The distinction between these two definitions is important and can cause confusion. The cash-flow relief produced by a flow rescheduling operation is important for countries facing immediate severe balance of payments or fiscal constraints, but the relief is limited to the consolidation period and it adds to future debt-service obligations even if it is accompanied by a reduction in the present value (PV) of debt. 16 The PV reduction measures the discounted stream of

International Monetary Fund

, resulting in an PV reduction of US$199.2 million in end-2002 terms—of which US$78.2 million resulted from the treatment of arrears owed to IBRD, and US$121.0 million from the treatment of arrears owed to IDA—which was applied to Enhanced HIPC debt relief on debts owed to IDA. Second, on July 31, 2001, the Executive Directors approved the post-conflict Emergency Early Recovery Grant in the amount of SDR 40 million, equivalent to a PV reduction of US$23.5 million in end-2002 terms, to be applied to Enhanced HIPC debt relief on debts owed to IDA. Third, the Executive

International Monetary Fund
The Democratic Republic of the Congo (DRC) has successfully implemented key reforms under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, despite experiencing exceptional challenges since the decision point, including a challenging security situation. Revised present value of HIPC assistance has given satisfactory assurances of their participation in the enhanced HIPC Initiative. The DRC does not qualify for topping-up under the enhanced HIPC Initiative. Full delivery of HIPC debt relief, and additional bilateral assistance beyond HIPC and Multilateral Debt Relief Initiative debt relief at the completion point would reduce the DRC’s external debt burden significantly.
International Monetary Fund

-Sharing Approaches” ( www.imf.org , and IDA/SEC M97-306; 7/7/97), that is, after full application of traditional debt relief mechanisms. 2 Using six-month backward-looking discount rates at end-December 2002 and end-December 2002 exchange rates. 3 Each creditor’s PV reduction in percent of its exposure at the decision point (after hypothetical Naples stock at the end of the base year). 4 Includes traditional debt relief; a hypothetical stock-of-debt on Naples terms with comparable treatment from non Paris Club creditors. 5 Goods and service exports, as

International Monetary Fund. African Dept.

-of-debt operation on Naples terms at end-1999. 4 Based on the latest data available at the completion point after full application of traditional debt relief mechanisms. 5 Each creditor’s PV reduction in percent of its exposure at the Decision Point reference date, end-December 1999. 6 Based on the latest annual data on the three -year average of exports of goods and nonfactor services at the Decision Point. 33. At the completion point, Guinea has received financing assurances of participation in the Enhanced HIPC Initiative from creditors accounting

International Monetary Fund. African Dept.
This paper was prepared by staffs of the International Monetary Fund and the World Bank in connection with the Executive Board’s consideration of Guinea’s Completion Point under the Enhanced Initiative for Heavily Indebted Poor Countries and debt relief under the Multilateral Debt Relief Initiative. It is based on the information available at the time it was completed on September 11, 2012. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Guinea or the Executive Board of the IMF.
International Monetary Fund. African Dept.
This paper discusses the status of Chad under Enhanced Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI). Chad does not qualify for topping-up under the Enhanced HIPC Initiative based on end-2013 debt data. Creditors accounting for more than 87 percent of total HIPC-eligible debt have given satisfactory assurances of their participation in the enhanced HIPC Initiative. Nearly all multilateral creditors and Paris Club creditors have agreed to participate. The authorities are working toward obtaining participation of all the remaining creditors. Upon reaching the completion point under the Enhanced HIPC Initiative, Chad will also qualify for additional debt relief under the MDRI.
International Monetary Fund. African Dept.

,017.6 5,200.2 6,343.2 9,105.4 9,848.4 3,839.9 7,122.2 Sources: Chadian authorities, and World Bank and IMF staff estimates and projections. 1 Assumes a stock-of-debt operation on Naples terms (67 percent PV reduction) as of end of 2013, and at least comparable action by other official bilateral and commercial creditors. 2 IMF HIPC relief is partially provided on the new ECF loan disbursed in 2014. This shows as an increase in debt service payments after enhance HIPC assisstance. 3 The reduction is measured as the difference between

International Monetary Fund. African Dept.
In June 2010, the International Development Association (IDA) and the IMF agreed that Comoros had met the requirements for reaching the decision point under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative. As a result of the debt reconciliation exercise for the completion point, the present value of eligible external debt at end-2009 has been revised upward. Full delivery of HIPC assistance together with additional bilateral assistance beyond HIPC and Multilateral Debt Relief Initiative (MDRI) debt relief at the completion point would reduce Comoros’ external debt burden significantly.