Across the world public concern with excessive debt burden of these low-income countries together with their lacklustre performance in poverty reduction provided the impetus for debt relief. In response, the IMF and World Bank launched the Heavily Indebted Poor Countries (HIPC) Initiative in 1996, the first international response to provide comprehensive debt relief to the world’s poorest, most heavily indebted countries. To date, the HIPC Initiative is nearly complete with the IMF and World Bank closing the scheme to new entrants in 2011. This report reviews the most recent literature (since 2006) analysing external and public debt dynamics for countries that have completed the HIPC initiative and MDRI (Multilateral Debt Relief Initiative).
Mustapha, S.; Prizzon, A. Is debt sustainable in the post-HIPC era? EPS PEAKS, UK (2014) 36 pp.