The Heavily Indebted Poor Countries (HIPC) Initiative is the first international response to provide comprehensive debt relief to the world's poorest, most heavily indebted countries. The HIPC Initiative was launched by the World Bank and the IMF in 1996, and was further expanded in late 1998 (Enhanced HIPC Initiative).
Under the HIPC Initiative, the World Bank and IMF Boards first decide whether or not a country is eligible for debt relief (decision point document). In a second step, all creditors (multilateral, bilateral, and commercial) commit debt relief to be delivered at a "floating" completion point. In between those steps, the country tries to implement the policies determined at the decision point (which are triggers to reaching the completion point). For more general information about the HIPC Initiative, please refer to the following web sites: DevNews Media Center Issue Briefs—Debt Relief or About the HIPC Initiative.
Mozambique and the HIPC
In April 1998, Mozambique was the sixth country to be declared eligible and to benefit from the HIPC Initiative, ensuring some US$1.4 billion (in nominal terms) in debt relief. In September 2001, Mozambique reached the completion point under the enhanced HIPC Initiative. Of the total estimated debt-service relief under HIPC of some US$4.3 billion, the World Bank provided about US$1.06 billion. For more information, refer to the Mozambique and HIPC web site.