| To date, IDA has provided about $4 billion under the Heavily Indebted Poor Countries (HIPC) Initiative, the process through which heavily indebted poor countries can gain debt relief from their external creditors to bring their debts down to the HIPC threshold levels, and $28 billion in debt forgiveness under the MDRI, which was introduced in 2006 and built on the HIPC Initiative. In aggregate, IDA will provide about $18 billion under HIPC and $36 billion under MDRI. To help countries maintain debt sustainability, IDA has developed a system for allocating grants based on countries’ risk of debt distress. This approach, also adopted by some other multilateral development banks, helps mitigate the risk of debt distress in the future. IDA also works with partners to support countries’ management of their external debts. |
© 2007 The International Bank for Reconstruction and Development/The World Bank
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