Initiative for Heavily Indebted Poor Countries - Issues Related to the Sunset Clause

Policy Papers, August 17, 2006

Source details

Canonical URL: Initiative for Heavily Indebted Poor Countries - Issues Related to the Sunset Clause

Paper responds to the Boards’ request to present a proposal addressing country eligibility under the HIPC Initiative sunset clause.
Builds on an informal note to the Boards which explored a number of options to deal with the sunset clause of the HIPC Initiative.
Proposes that the sunset clause be allowed to take effect and the countries that are assessed to have met the income and indebtedness criteria based on end-2004 data be grandfathered.
Discusses the issue of a permanent exit from the Initiative for countries wishing to do so, in response to concerns raised by Directors.

The HIPC Initiative sunset clause is scheduled to take effect at end-2006.
The paper addresses concerns raised by Directors in their discussion of the informal note in July 2006.
Publication date: August 17, 2006.

Allow the sunset clause to take effect at end-2006.
Grandfather countries assessed to have met the income and indebtedness criteria based on end-2004 data.
Recognizes Directors’ concerns and provides additional discussion on permanent exit options for countries.

Eligibility criteria application timing: assessment based on end-2004 data.
Treatment of countries meeting income and indebtedness criteria prior to the sunset date.
Design and implications of a process for permanent exit from the HIPC Initiative for interested countries.

Source: Initiative for Heavily Indebted Poor Countries - Issues Related to the Sunset Clause (August 17, 2006).