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.
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…
