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Debt Issues in Low Income Countries

IDA at Work: Climate Change

IDA at Work Impact

  • IDA has committed over $6.5 billion to Heavily Indebted Poor Countries (HIPC) initiative that helps 35 countries
  • IDA has provided around $15 billion to Multilateral Debt Relief Initiative (MDRI) that helps 26 countries
  • Creation of Debt Management Facility, a grant facility to strengthen debt management capacity

Over the last 13 years, IDA has been a leader in supporting low-income countries’ efforts to reduce their burden of external debt–whether through debt relief, debt sustainability analyses, or assistance in debt management.

The Heavily Indebted Poor Countries (HIPC) Initiative was jointly launched by the IMF and World Bank in 1996. It was significantly broadened in 1999, when it became linked to the development of poverty reduction strategies in beneficiary countries. Over this period a number of eligible countries undertaking economic reforms have been able to greatly reduce their external debt. Under the enhanced HIPC initiative, IDA’s share is 20 percent of the total estimated cost of debt relief.

Learn more:
Download Icon IDA at Work: Debt
[PDF, 9-page brief, July 2009]

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