| In 2002*, the external debt of low-income countries stood at about $523 billion. Of this $399 billion was public and publicly guaranteed debt. Low-income countries owed $104 billion to the World Bank. Of this, $82 billion was owed to the International Development Association—the part of the World Bank that provides zero interest loans and outright grants to the poorest nations. The International Bank for Reconstruction and Development was owed $22 billion.
Debt Relief for Low Income Countries
- The World Bank's contribution to HIPC will be about $13 billion.
- Debt service-to-export rations have been substantially reduced, to an average of 10 percent. Savings from lower debt service payments have contributed to a substantial increase in poverty reducing expenditures.
- In African countries receiving debt relief, poverty reduction spending (such as allocations to education and health) has increased from about 38.6 percent of government revenue in 1999 to 47.8 percent in 2003.
Foreign Debt for Middle Income Countries
In 2002*, the external debt of middle income countries was about $1,817 billion. Of this, public and publicly guaranteed debt stood at $983 billion. Middle-income countries owed about $107 billion to the World Bank. Of this, $18 billion was owed to the International Development Association and $89 billion was owed to the International Bank for Reconstruction and Development.
Source: Online GDF, 2004
All figures in US dollars
*The latest year for which figures are available.
Dowload HIPC at a Glance (PDF)
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