News Release No. 2006/HN/June 29 Contacts:
In Washington: Amy Stilwell (202) 458-4906
Astilwell@worldbank.org
In Tegucigalpa: María Amalia San Martín (504) 239-4551
Msanmartin@worldbank.org WASHINGTON, June 29, 2006 – Starting on July 1, 2006, the World Bank will cancel the International Development Association (IDA) debt of Honduras under the Multilateral Debt Relief Initiative (MDRI). Honduras will receive US$1.293 billion, which is the total amount of additional IDA debt relief provided under the MDRI and the IDA portion of debt relief already committed under the Heavily Indebted Poor Countries Initiative (HIPC). “We have secured a level of financing commitments from donors that allows us to begin implementing the Multilateral Debt Relief Initiative,” said World Bank President Paul Wolfowitz. “Additional debt relief will help Honduras channel resources into programs that directly help the people who need it most — the poor who need and deserve a better education, better health services, greater access to clean water, and greater opportunities to escape poverty.” Countries that have “graduated” – called reaching the completion point - from the HIPC Initiative are eligible for additional debt relief under the MDRI. Honduras will receive estimated MDRI relief in the amount of US$1.185 billion, which is in addition to the US$108 million in IDA debt relief committed under the HIPC initiative. Assistance under the MDRI initiative is intended to provide additional resources to achieve the Millennium Development Goals (MDGs). Honduras has made significant progress and is currently expected to meet three MDGs based on current trends by 2015: universal primary enrollment; reducing maternal mortality by three-quarters; and reducing the share of the population without access to improved water source by half. Further progress will be needed it Honduras is to meet the MDGs in four areas: reducing extreme poverty by half, reducing under five malnutrition by half, and reducing under five and infant mortality by two-thirds. “MDRI will make an important contribution to Honduras’ Poverty Reduction Strategy,” noted Jane Armitage, the World Bank’s Director for Central America. “Honduras’ participation in the MDRI recognizes the progress made since HIPC Completion Point in April 2005, especially as regards maintaining macro-economic stability and improvements in the public financial management system. The Government’s efforts to improve the targeting and effectiveness of public spending, focusing resources on programs that benefit the poor, will be critical for making further progress in achieving the MDGs.” Background:
The Multilateral Debt Relief Initiative (MDRI), which will cancel the International Development Association (IDA) debt of some of the world’s poorest countries, will take effect on July 1, 2006. Under the MDRI, IDA is expected to provide some US$37 billion in debt relief over 40 years. This is in addition to some US$17 billion of debt relief already committed by IDA under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Initially, 19 countries will receive 100 percent cancellation of their eligible debt: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia. The remaining HIPC countries (see HIPC Web Site) will be eligible for debt cancellation once they have completed the requirements of the HIPC Initiative. # # # For more information on the World Bank’s work in Honduras, please visit: http://www.worldbank.org/honduras |
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