ildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need t

A country is potentially eligible for the HIPC Initiative if it meets income and indebtedness criteria. Its annual per capita income must be below the threshold for eligibility for concessional borrowing from both the World Bank and the IMF and external public debt must exceed 150 percent of its exports (or in certain cases 250 percent of fiscal revenues). There are 40 such potentially eligible HIPCs. To become eligible, the country must also have had a program with the IMF at some point since the start of the Initiative in 1996.

The provision of debt relief then depends on policies being in place to ensure that it effectively contributes to poverty reduction. The fraction of debt that creditors’ are asked to forgive (the common reduction factor) is then calculated to bring the country’s debt ratio back to a sustainable level (150 percent of exports or in certain cases 250 percent of fiscal revenues).

The first stage of qualification is the decision point, at which the country must have a current track record of satisfactory performance under an IMF program, a Poverty Reduction Strategy (PRS) or an interim PRS in place, and an agreed plan to clear any arrears to foreign creditors. At the decision point, many creditors, such as the World Bank, the IMF, multilateral development banks, and Paris Club bilateral creditors, begin to provide debt relief, although many of these institutions maintain the right to revoke this if policy performance falters.

Debt relief from participating creditors becomes irrevocable at the completion point. At the decision point, the country agrees on a short list of completion point triggers, upon which the country will “graduate” from the HIPC Initiative. These include a continued track record of satisfactory performance on an IMF program and the implementation for at least one year of the PRS. Some triggers may relate to progress in social areas such as health and education, while others may relate to improving governance or fighting corruption to give donors sufficient confidence that debt relief assistance will be well-used.

Twenty-two countries have reached the completion point: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, S?o Tom? and Pr?ncipe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Eight countries have reached the decision point: Burundi, Chad, the Democratic Republic of Congo, the Republic of Congo, The Gambia, Guinea, Guinea-Bissau and Haiti.

Ten countries remain potentially eligible: Central African Republic, Comoros, C?te d’Ivoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. Many of these have been beset by civil war, cross-border armed conflict, and governance challenges (including in some cases the buildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need to

asked to forgive (the common reduction factor) is then calculated to bring the country’s debt ratio back to a sustainable level (150 percent of exports or in certain cases 250 percent of fiscal revenues).

The first stage of qualification is the decision point, at which the country must have a current track record of satisfactory performance under an IMF program, a Poverty Reduction Strategy (PRS) or an interim PRS in place, and an agreed plan to clear any arrears to foreign creditors. At the decision point, many creditors, such as the World Bank, the IMF, multilateral development banks, and Paris Club bilateral creditors, begin to provide debt relief, although many of these institutions maintain the right to revoke this if policy performance falters.

Debt relief from participating creditors becomes irrevocable at the completion point. At the decision point, the country agrees on a short list of completion point triggers, upon which the country will “graduate” from the HIPC Initiative. These include a continued track record of satisfactory performance on an IMF program and the implementation for at least one year of the PRS. Some triggers may relate to progress in social areas such as health and education, while others may relate to improving governance or fighting corruption to give donors sufficient confidence that debt relief assistance will be well-used.

Twenty-two countries have reached the completion point: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, S?o Tom? and Pr?ncipe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Eight countries have reached the decision point: Burundi, Chad, the Democratic Republic of Congo, the Republic of Congo, The Gambia, Guinea, Guinea-Bissau and Haiti.

Ten countries remain potentially eligible: Central African Republic, Comoros, C?te d’Ivoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. Many of these have been beset by civil war, cross-border armed conflict, and governance challenges (including in some cases the buildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need t

ight to revoke this if policy performance falters.

Debt relief from participating creditors becomes irrevocable at the completion point. At the decision point, the country agrees on a short list of completion point triggers, upon which the country will “graduate” from the HIPC Initiative. These include a continued track record of satisfactory performance on an IMF program and the implementation for at least one year of the PRS. Some triggers may relate to progress in social areas such as health and education, while others may relate to improving governance or fighting corruption to give donors sufficient confidence that debt relief assistance will be well-used.

Twenty-two countries have reached the completion point: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, S?o Tom? and Pr?ncipe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Eight countries have reached the decision point: Burundi, Chad, the Democratic Republic of Congo, the Republic of Congo, The Gambia, Guinea, Guinea-Bissau and Haiti.

Ten countries remain potentially eligible: Central African Republic, Comoros, C?te d’Ivoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. Many of these have been beset by civil war, cross-border armed conflict, and governance challenges (including in some cases the buildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need t

the completion point: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, S?o Tom? and Pr?ncipe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Eight countries have reached the decision point: Burundi, Chad, the Democratic Republic of Congo, the Republic of Congo, The Gambia, Guinea, Guinea-Bissau and Haiti.

Ten countries remain potentially eligible: Central African Republic, Comoros, C?te d’Ivoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. Many of these have been beset by civil war, cross-border armed conflict, and governance challenges (including in some cases the buildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need t

ildup of substantial arrears on external debt).

The design of the HIPC Initiative also takes into account changes in economic circumstances brought on by external factors beyond the government’s control during the interim between the decision point and the completion point. When the country reaches the completion point, additional debt relief (topping up) may be granted to mitigate the impact of external shocks and ensure that the debt ratio at the completion point is sustainable.

A review of the HIPC Initiative by the World Bank Group’s Independent Evaluation Group found that it has enabled higher spending on countries’ social programs and poverty reducing investments but also noted the need to manage expectations of what debt relief can realistically achieve. Long-run debt sustainability ultimately relies on countries’ broader success in building the institutions to support sustained economic growth.