HIPC decision point is the date at which a heavily indebted poor country with an established track record of good performance under adjustment programs supported by the International Monetary Fund (IMF) and the World Bank commits to undertake additional reforms and to develop and implement a poverty reduction strategy.
HIPC completion point is the date at which the country successfully completes the key structural reforms agreed at the decision point, including the development and implementation of its poverty reduction strategy. The country then receives the bulk of debt relief under the HIPC initiative without any further policy conditions.
Goal 8. Develop a global partnership for development.
Target 12. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system. Includes a commitment to good governance, development and poverty reduction—both nationally and internationally.
Target 13. Address the special needs of the least developed countries. Includes: tariff and quota-free access for least developed countries’ exports; enhanced programme of debt relief for HIPCs and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction.
Target 14. Address the special needs of landlocked countries and small island developing States (through the Programme of Action for the Sustainable Development of Small Island Developing States and the outcome of the twenty-second special session of the General Assembly).
Target 15. Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term.
A global partnership for development requires increased debt reduction for heavily indebted poor countries. The indicator will monitor the Heavily Indebted Poor Countries (HIPC) Initiative, a major international effort targeted specifically at improving developing countries’ debt sustainability. Launched in 1996 and enhanced in 1999 to broaden and accelerate debt relief, the HIPC Initiative marked the first time that multilateral, official bilateral and commercial creditors united in a joint effort to reduce the external debt of the world’s most debt-laden poor countries to sustainable levels.
See “Definition”.
Information is compiled by the IMF and World Bank from their HIPC decision and completion point documents (see “References”).
International Monetary Fund, www.imf.org and www.imf.org/external/np/exr/facts/hipc.htm.
World Bank, www.worldbank.org/hipc.
Twice a year.
The HIPC Initiative was launched in 1996. The earliest available data are for 2000 and the most recent available data are for 2002.
International Monetary Fund.
World Bank.