Heavily Indebted Poor Countries (HIPC) Initiative—Status of Implementation

Prepared by the Staffs of the IMF and World Bank

August 19, 2005

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Contents

Executive Summary

1. Introduction
2. Implementation Update
   1. Progress in Qualifying for Enhanced HIPC Initiative Debt Relief
   2. Reduction in Debt Stocks and Debt Service
3. Costs and Creditor Participation
   1. Projected Costs of the HIPC Initiative Relief
   2. Multilateral Creditors
   3. Official Bilateral Creditors
   4. Commercial Creditors and Creditor Litigation
4. Countries Potentially Eligible for Assistance Under the Enhanced HIPC Initiative
   1. Preliminary List of Countries Potentially Eligible for Assistance under the Enhanced HIPC Initiative
   2. Progress in Implementation of Conditions to Qualify for the HIPC Initiative
5. Issues for Discussion

Tables

Table 1: HIPC Initiative: Committed Debt Relief and Outlook

Table 2: HIPC Initiative: Distribution and Estimated Costs by Main Creditors and by Country Group

Table 3: Creditors Involved in Litigation Against HIPCs

Table 4: Preliminary List of Countries Potentially Eligible for Assistance under the HIPC Initiative

Table 5: Potentially Eligible Countries: Estimated Costs by Main Creditors and by Country Group

Table 6: Progress and Implementation in Countries that are Potentially Eligible for the HIPC Initiative

Figures

Figure 1. Debt Stock Reduction

Figure 2. Debt-Service Reductions

Figure 3. Reduction in Debt Service due for the 27 Countries that Have Reached Decision or Completion Points

Figure 4. Poverty-Reducing Expenditures and External Debt Service

Figure 5. Estimated Debt Stock Reduction

Figure 6. Structure of the Estimated Cost of HIPC Initiative Assistance for the 13 CountriesPotentially Eligible for the HIPC Initiative

Boxes

Box 1. Extension of Limit for the Delivery of Interim Relief by IDA

Box 2. Paris Club—Debt Relief Under the HIPC Initiative

Box 3. Non-Paris Club Creditors Participation Under the HIPC Initiative

Annexes

Annex I: Enhanced HIPC Initiative: Country Implementation Status Notes

Annex II: Country Coverage, Data Sources, and Assumptions for the HIPC Costing Exercise

Annex III: The Identification of Countries Potentially Eligible for the HIPC Initiative

Appendix Tables

Table 1A. Summary Debt Service for 28 HIPCs that have Reached Decision Points

Table 1B. Debt Service for Individual HIPCs that have Reached Decision Points, by

Country

Table 2A. Poverty Reducing Expenditure by the 28 HIPCs that have Reached Decision Points

Table 2B. Poverty Reducing Expenditure for the 28 HIPCs that have Reached Decision Points, by Country, 1999–2007

Table 3. HIPC Initiative: Changes in the Estimates of Potential Costs by Creditor Group for the 28 HIPCs that have Reached Decision Points

Table 4. HIPC Initiative: Breakdown of Estimated Potential Costs by Main Creditors and by Country Groups

Table 5. HIPC Initiative: Estimated Costs for Multilateral Creditors and Status of Their Commitments

Table 6A. HIPC Initiative: Status of Delivery of Assistance by the World Bank

Table 6B. HIPC Initiative: Estimated Delivery of World Bank Assistance, 2000–10

Table 7A. HIPC Initiative: Status of Commitments by the IMF

Table 7B. HIPC Initiative: Estimated Delivery of IMF Assistance, 1998–2010

Table 8. Status of Bilateral Donor Pledges to the HIPC Trust Fund

Table 9A. HIPC Initiative: Estimated Paris Club Costs, by Creditor Country

Table 9B. HIPC Initiative: Paris Club Debt Relief

Table 10. Paris Club Creditors' Delivery of Debt Relief Under Bilateral Initiatives Beyond the HIPC Initiative

Table 11A. HIPC Initiative: Estimated Non–Paris Club Official Bilateral Creditors' Costs, by Creditor Country

Table 11B. HIPC Initiative: Delivery of HIPC Assistance by Non–Paris Club Creditors