Debt Relief

Debt relief involves the cancellation, rescheduling, or refinancing of a nation’s external debts. Many of the world’s poorest countries have high levels of external debt owed to other governments, institutions such as the IMF and foreign companies, banks and individuals. The Heavily Indebted Poor Countries Initiative (HIPCI) is an initiative to provide debt relief to heavily indebted low-income countries.Debt relief agreements are often conditional on the host country introducing structural economic reforms.