 | The Enhanced HIPC initiative cut debt ratios in half for 18 countries, but in eight of these countries, the ratios have come to once again exceed HIPC thresholds. Debt reduction alone is not a sufficient instrument to affect debt sustainability, which also requires improvements in repayment capacity. | Facts and Figures | 
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| HIPC has channeled additional development resources to qualifying countries – these countries have received an increased share of overall aid transfers. Net transfers to HIPC countries have doubled from $8.8 billion in 1999 to $17.5 billion in 2004, while transfers to other developing countries have grown by only one-third. | |
| Post-completion point countries started out with higher scores on key policy ratings than other low-income countries and they still score higher. HIPC countries that are not yet at completion point have on average the lowest ratings of all low-income countries. They face serious challenges in managing their economies, which will affect their prospects for reaping the potential benefits of debt reduction. |
| Six of eight post-completion countries with new debt sustainability analyses have only a moderate risk of debt distress, but all remain vulnerable to export shocks and still require highly concessional financing and prudent debt management. |
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