The Prospects For Foreign Debt Sustainability In Post-Completion Point Countries: Implications Of The HIPC-MDRI Framework
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.
|Date of creation:||2008|
|Contact details of provider:|| Postal: Humanities Bridgeford Street, Oxford Road,Manchester, M13 9PL|
Phone: +44(0)7717 881567
Web page: http://www.gdi.manchester.ac.uk/
More information through EDIRC
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)
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.