Debt relief

Debt relief creates new opportunities

A herder pours water for his camels at an EC funded water catchment point in Harshin District, Ethiopia.

Since the mid-fifties, under agreements forged by the Paris Club (of major creditor countries), the industrial countries have put together a series of rescheduling – and later debt relief – arrangements for heavily indebted poor countries (HIPC). The aim was to reduce these countries’ debt burden to a sustainable level.

With the HIPC Initiative and the Multilateral Debt Relief Initiative highly indebted countries can, for the first time, also be relieved of a large part of their debt vis-à-vis multilateral institutions.

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