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<p>Under the primary debt relief mechanism for low income countries, the Heavily indebted Poor Country (HIPC) initiative, countries must meet the following conditions in order to qualify for debt relief:</p><p>be identified as low income, based on eligibility to borrow from the World Bank's International Development Agency and from the IMF's Poverty Reduction and Growth Trust;</p><p>face an unsustainable debt burden that requires a HIPC debt treatment;</p><p>have established a track record of reform and sound policies through IMF and World Bank supported programmes; and</p><p>agree and implement a Poverty Reduction Strategy Paper.</p><p>Multilateral discussions on debt relief take place at the Paris Club. For non- HIPCs there are no set conditions for countries to receive debt relief, but Paris Club agreements typically require evidence of sound economic and, where appropriate, poverty reduction policies.</p> |