Policy Papers
2005
December 8, 2005
Multilateral Debt Relief Initiative - A First Assessment of Eligible Countries
Description: This paper responds to the Board’s request for an assessment of eligible countries that could qualify for Fund debt relief under the MDRI once the requisite consents and requests have been received. Directors requested that, by end-2005, staff prepare, in collaboration with the World Bank, an assessment of the 18 post-completion point HIPCs, as well as eligible non-HIPCs, and propose for Board consideration a list of members that would qualify immediately for MDRI debt relief. Directors also requested that, for those members that do not presently meet the MDRI qualification criteria, remedial measures be expressly identified that would allow them to qualify for MDRI relief.
December 8, 2005
Benin - Staff Assessment of Qualification for the Multilateral Debt Relief Initiative
Description: Benin reached the completion point under the enhanced HIPC Initiative on March 24, 2003. Staff is of the view that all criteria have been met, and recommends that the Board determine that Benin qualifies for immediate debt relief under the MDRI.
December 8, 2005
Bolivia - Staff Assessment of Qualification for the Multilateral Debt Relief Initiative
Description: Staff is of the view that all criteria have been met, and recommends that the Board determine that Bolivia qualifies for immediate debt relief under the MDRI.
December 8, 2005
Ghana - Staff Assessment of Qualification for the Multilateral Debt Relief Initiative
Description: Staff is of the view that all criteria have been met, and recommends that the Board determine that Ghana qualifies for immediate debt relief under the MDRI.
December 2, 2005
The Fund's Income Position for FY 2006 - Midyear Review
Description: This paper presents the Fund’s actual outcome for the first half of FY 2006 together with updated income projections for the year as a whole.
November 16, 2005
Multilateral Debt Relief Initiative and Exogenous Shocks Facility - Proposed Decisions
Description: This paper puts forward a package of proposed decisions to implement the Multilateral Debt Relief Initiative (“MDRI”) and establish the Exogenous Shocks Facility within the PRGF Trust; it also provides a Commentary on key aspects of the decisions. The proposed decisions generally reflect the overall structure and modalities that have been identified by the staff and endorsed by Executive Directors in the several meetings held to date concerning the G-8 debt relief proposal/MDRI and ESF.
Notes: The Board approved the requisite decisions to implement the MDRI on November 23, 2005.
November 9, 2005
Are Fund Staff Projections of Debt More Optimistic Under Program Contexts?
Description: This note examines whether projections made in the context of a Fund-supported program are systematically more optimistic than those done for surveillance cases. Of particular interest in this regard is the assessment of external debt sustainability, as this underlies the "capacity to repay the Fund" analysis. Accordingly, this note examines debt projections over the period 1990-2004, with data for transition countries beginning in 1995.
November 1, 2005
The Multilateral Debt Relief Initiative (G-8 Proposal) and Its Implications for the Fund - Further Considerations - Supplemental Information
Description: The Executive Board held an informal seminar on September 21, 2005 to discuss possible implementation modalities for the G-8 debt relief proposal. On September 24, 2005, the International Monetary and Financial Committee supported providing 100 percent cancellation of debt owed by HIPCs to the Fund, and considered that this would provide significant additional resources for countries’ efforts to reach the Millennium Development Goals and reinforce long-term debt sustainability.
November 1, 2005
The Multilateral Debt Relief Initiative (G-8 Proposal) and Its Implications for the Fund - Further Considerations - Supplement on Financing Arrangements
Description: This supplement discusses the financial structure for the implementation of the G-8 debt relief proposal or Multilateral Debt Relief Initiative (MDRI). Implementation of the MDRI will require action by the Executive Board and by contributions to the Subsidy Account of the PRGF Trust. To be in a position to deliver debt relief under the MDRI by the beginning of 2006 will require the early adoption by the Board of a number of decisions. It will also require the timely consent by all contributors to the Subsidy Account of the PRGF Trust to an amendment of the PRGF Trust Instrument that would allow the transfer of a portion of their resources to a new administered account for use in providing MDRI debt relief to HIPCs with incomes above the MDRI threshold.
November 1, 2005
Doha Development Agenda and Aid for Trade -- Supplement
Description: At their 2005 Spring meetings, the Development Committee and IMFC called on the Bank and Fund to work with others to develop more detailed proposals, for consideration at the Annual Meetings, to help developing countries adjust to and take advantage of the Doha Round. In response, Bank and Fund staff prepared a paper on “The Doha Development Agenda and Aid for Trade” following a consultation process with donors and least developed countries (LDCs) during the summer. This is a Supplement to the main paper.