Starting more than two decades ago, the World Bank, in partnership with the International Monetary Fund (IMF) and the international community, has worked with developing countries to reduce their debt burdens. The purpose of this work is to help them fight against poverty and contribute to the achievement of the Sustainable Development Goals (2015-2030).
The World Bank’s debt relief work is divided into two main categories:
- Multilateral and Bilateral Debt. In 1996, the World Bank and the IMF launched the Heavily Indebted Poor Countries (HIPC) Initiative in response to accumulation of unsustainable, developing-country debt in the 1970s and 1980s. It called for voluntary debt relief from all creditors, and gave eligible…