Development financing

Pressing ahead on debt relief

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Background: Debt hinders development

High levels of debt can become an obstacle to development if they limit the scope for poverty reduction. If the debt burden is so large that even with above-average economic growth a country is barely able to meet its interest and redemption payments, then there is no money left for urgently needed investments in basic services and infrastructure such as schools, hospitals, sanitation and power supplies. This affects the poorest of the poor most. more

Debt relief initiatives for poor countries

Here you can find detailed information on the Heavily Indebted Poor Countries (HIPC) debt relief initiative, the Multilateral Debt Relief Initiative (MDRI) and the review of these debt relief initiatives. more

Debt-for-development swaps

Debt swaps have proven to be an important development policy instrument. The principle is as follows: a partner country undertakes to provide funding for development projects within its own borders; in exchange, Germany grants debt relief for at least the equivalent amount. more

After debt relief – what next?

Securing the long-term sustainability of debt in the poorest countries is a joint challenge for debtors and creditors. It is important so that the debt burden in these countries will not become an obstacle to development again. more

Further information

Here you can find a selection of documents and websites offering further information on the subject of debt relief. more

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