Assessing Bolivia´s debt relief under the heavily, indebted poor countries initiative
This paper examines whether Bolivia has made enough progress in debt relief under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative, thus taking a sustainable debt path and graduating from debt renegotiations definitely. We find that reaching the completion point at the Enhanced HIPC initiative was a major milestone to provide significant debt relief, far bigger than the one obtained under previous traditional debt renegotiation mechanisms. However, given exogenous-external and domestic-shocks, declining aid trends and optimistic macro-assumptions used in the Enhanced HIPC debt renegotiations, the probability of having Bolivia reversing to unsustainable debt ratios is high. Henceforth, there are four possible reasons for Bolivia to consider adopting further debt proposals. Achieving the Millennium Development Goals would require extra resources; unexpected shocks would justify the creation of a HIPC contingency fund for graduated countries, Bolivia debt sustainability targets might be lower than the standard ones defined by the Enhanced HIPC; and donors aid might be turning to be more selective, concentrated on good performers like Bolivia.
Volume (Year): 6-7 (2003)
Issue (Month): 2-1 (December)
|Contact details of provider:|| Postal: Casilla Postal 3118, La Paz|
Phone: (591 - 02) 374151
Web page: https://www.bcb.gob.bo/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cohen, Daniel, 2001.
"The HIPC Initiative: True and False Promises,"
Wiley Blackwell, vol. 4(3), pages 363-380, Winter.
- Andersen, Lykke Eg & Nina, Osvaldo, 2000. "The HIPC Initiative In Bolivia," Documentos de trabajo 4/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- Christina Daseking & Robert Powell, 1999. "From Toronto Terms to the HIPC Initiative; A Brief History of Debt Relief for Low-Income Countries," IMF Working Papers 99/142, International Monetary Fund.
- Juan Antonio Morales & Jeffrey D. Sachs, 1989. "Bolivia's Economic Crisis," NBER Chapters, in: Developing Country Debt and the World Economy, pages 57-80 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:blv:journl:v:6-7:y:2003:i:2-1:p:89-138. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jose Antonio Caballero Pelaez)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.