IDEAS home Printed from
   My bibliography  Save this paper

The Prospects For Foreign Debt Sustainability In Post-Completion Point Countries: Implications Of The HIPC-MDRI Framework


  • Jacinta Nwachukwu


The Enhanced HIPC Initiative was launched in 1999 to reduce the NPV of poor country foreign debt to a sustainable threshold of 150 percent of their exports. This paper applies a simple growth-with-debt model to sixteen post-completion point HIPCs to assess whether or not this goal will be met by 2015. Our somewhat optimistic base case projections suggest that participation in the current Enhanced HIPC-MDRI initiative will only reduce the NPVs of their external debt as a whole to 176 percent of exports by this date. Sensitivity tests which expose these countries to adverse exogenous shocks help draw attention to policies that could ensure that unsustainable debt levels are not again accumulated by the world’s poorest countries.

Suggested Citation

  • Jacinta Nwachukwu, 2008. "The Prospects For Foreign Debt Sustainability In Post-Completion Point Countries: Implications Of The HIPC-MDRI Framework," Global Development Institute Working Paper Series 2608, GDI, The University of Manchester.
  • Handle: RePEc:bwp:bwppap:2608

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:jed:journl:v:43:y:2018:i:3:p:1-24 is not listed on IDEAS
    2. repec:eme:jepppp:jepp-03-2017-0007 is not listed on IDEAS
    3. Joshua C. Hall, Serkan Karadas and Minh Tam T. Schlosky, 2018. "Is There Moral Hazard in the Heavily Indebted Poor Countries (HIPC) Initiative Debt Relief Process?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 1-24, September.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bwp:bwppap:2608. 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: (Rowena Harding). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.