To support low-income countries in achieving the Millennium Development Goals and help prevent a recurrence of debt problems that could undermine these objectives, the IMF, in collaboration with the World Bank and in consultation with donors and low-income countries, is working to develop a framework to guide low-income countries’ borrowing. This framework would assist countries that have already received permanent debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and other low-income countries where debt is potentially an issue.
As a first step, IMF staff have prepared a paper outlining and assessing some of the key issues that would need to be considered. The paper, “Debt Sustainability in Low-Income Countries—Toward a Forward-Looking Strategy,” was discussed by the IMF’s Executive Board on July 11 and has been posted on the IMF’s website. Comments on the paper should be sent by e-mail to LICDebtSust@imf.org by September 30.
(For the full text of Press Release No. 03/115, see the IMF’s website [www.imf.org]).