Heavily Indebted Poor Countries Initiative and Poverty Reduction Strategy Papers: Progress Reports

In 1999 Ministers endorsed enhancements to the Heavily Indebted Poor Countries (HIPC) Initiative and proposals to link debt relief, as well as overall Bank and Fund concessional lending, more closely to comprehensive development strategies described in country-owned Poverty Reduction Strategy Papers (PRSPs). Initial Progress Reports were prepared for the Committees in April 2000.

This memo, produced by the International Monetary Fund (IMF), argues that the decision to link debt relief with PRSPs, while there are some areas of concern, has been evolving effectively. The memo provides information on the progress to date and initiatives to accelerate implementation of the HIPC Initiative, as well as the financing of the enhanced HIPC Initiative. It also examines the positive experience with early interim PRSPs and full PRSPs, some areas of concern, and how the IMF and the International Development Association (IDA) of the World Bank are aiming to meet the challenges of implementing the PRSPs. [adapted from author]