Home >>Debt  >>  international

International Debt Relief



International debt relief is that kind of a debt relief, which is provided by the international monetary organizations like the World Bank, International Monetary Fund, African Development Bank, and other multilateral institutions.

The international monetary organizations offer their debt relief programs to a number of underdeveloped countries or heavily indebted poor countries that are collectively known as HIPC.

International debt relief is a process in which a debt of a nation is partially or totally conceded or exempted. International debt relief also involves the prevention or decelerating of the increase in debt. International debt relief is especially concerned with the Third World debt or the debts of the Third World countries or the developing countries. International debt relief primarily focuses on the alleviation of the debt burden of the underdeveloped and developing countries. The international debt relief organizations carry out their operations in collaboration with a number of nongovernmental organizations (NGOs) and various charitable organizations located in different countries.

The subject of international debt relief has been a principal agenda of the Western Countries and important international institutions like the World Bank and International Monetary Fund. The initiative of HIPC (heavily indebted poor countries) program was introduced for offering an orderly debt relief plan for the impoverished countries. At the same time, this plan is implemented to assure that the money received from the international monetary organizations is spent for alleviation of poverty.

The HIPC program functions according to the same terms and conditions laid out for the World Bank and IMF loans, which necessitate reforms associated with structural adjustments (in some instances that includes the privatization of public utility services, for example electricity and water). In order to become eligible for uncontrollable debt relief, the countries should observe stability at the macroeconomic level and apply an acceptable poverty reduction strategy for a minimum period of one year. A few countries have been forced to decrease their expenditure in the education and health sector for the objective of decreasing inflation.

The MDRI or Multilateral Debt Relief Initiative is an addition to the HIPC plan. The decision regarding the MDRI was taken in the G8 summit held in July 2005. It states that the total amount of multilateral debts taken by the HIPC countries from the IDA (International Development Association), African Development Bank, and the IMF will be called off.

For more information please go through the following links:


International Debt Relief
  • Debt Relief in     Australia
    		•
  • Debt Relief Africa
    		•
  • Canada Debt     Relief
    		•
  • Debt Relief in Third     World Countries
    		•



    Top Viewed Pages

    World Largest Banks
    Cic Triple Advantage
    Bank of Nova Scotia
    World Share Market
    Aflac Insurance Company
    Nigerian Stock Exchange