The World Bank, the International Monetary Fund (IMF) and other multilateral, bilateral and commercial creditors began the Heavily Indebted Poor Countries (HIPC) Initiative in 1996. The program was designed to ensure that the poorest countries in the world are not overwhelmed by unmanageable or unsustainable debt burdens. It reduces the debt of countries meeting strict criteria.
The following countries have qualified for debt-relief under the HIPC Initiative and the MDRI.
| Country | Decision Point Document | Completion Point Document |
|---|---|---|
| Afghanistan | English | English |
| Benin | English | English |
| Bolivia | ||
| Burkina Faso | ||
| Burundi | English | English |
| Cameroon | English | English |
| Central African Republic | English | English |
| Chad | English | English |
| Comoros | English | English |
| Republic of Congo | English | English |
| Democratic Republic of Congo | English | English |
| Côte d’Ivoire | English | English |
| Ethiopia | English | English |
| The Gambia | English | English |
| Ghana | English | English |
| Guinea | English | English |
| Guinea-Bissau | English | English |
| Guyana | ||
| Haiti | English | English |
| Honduras | English | English |
| Liberia | English | English |
| Madagascar | English | English |
| Malawi | English | English |
| Mali | ||
| Mauritania | English | English |
| Mozambique | ||
| Nicaragua | English | English |
| Niger | English | English |
| Rwanda | English | English |
| Somalia | English | English |
| São Tomé & Príncipe | English | English |
| Senegal | English | English |
| Sierra Leone | English | English |
| Tanzania | English | English |
| Togo | English | English |
| Uganda | ||
| Zambia | English | English |
In December 2023, Somalia reached the HIPC initiative completion point, achieving debt service savings of $4.5 billion and getting access to critical additional financial resources to strengthen its economy.
Eritrea and Sudan are potentially eligible for debt relief but have not yet started the process.
To be eligible for the HIPC Initiative a country must:
- Face unsustainable debt situation after the full the full application of the traditional debt relief mechanisms (such as the application of Naples terms under the Paris Club agreement).
- Be only eligible for highly concessional assistance from the International Development Association (IDA) and from the IMF’s Poverty Reduction and Growth Trust (PGRT).
- Have established a track record of reform and sound policies through IMF and World Bank supported programs.
- Establish a track record of reform and develops a Poverty Reduction Strategy Paper (PRSP) that involves civil society participation.
Last Updated: May 09,2024
