The G-8 Debt Cancellation Proposal and Its Implications for the Fund
Prepared by the Policy Development and Review, Legal and Finance DepartmentsIn consultation with other departments
July 20, 2005
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Contents |
- Introduction
- Description of the G-8 Proposal
- Financial Implications of the Proposal for the Fund
- Cost of the G-8 Proposal
- Financing Needs and Sources
- Mitigating the Impact on the Fund’s Finances
- Future Fund Lending
Future Fund Lending to HIPCs
Estimated Resource Needs of the PRGF
Estimated Resource Needs of the Shocks Window
- Legal and Policy Issues Raised by the Proposal
- Eligibility and Uniformity of Treatment
Background and General Principles
Assessing the G-8 Proposal - Conditionality
- Potential Implications of the Proposal for Fund Instruments
The Self-Sustained PRGF
The Policy Support Instrument (PSI)
The PRGF Shocks Window - Implications for the Low-Income Country Debt Sustainability Framework
- Eligibility and Uniformity of Treatment
- Approvals and Other Actions Needed to Effect the Proposal
- Issues for Discussion
Tables
1. Country Coverage of the G-8 Proposal
2. Fund Credit Outstanding to 35 HIPCs, December 2004–December 2005
3. Fund Credit Outstanding and Projected Principal Repayments of 35 HIPCs
4. Fund Credit Outstanding to 35 HIPCs
5. Incremental Cost of Proposed Additional Debt Relief to 35 HIPCs
6. Existing Resources Earmarked for HIPC Debt Reduction Operations and Concessional
Lending
7. Policy Performance and Per-Capita Income of Selected Groups of Countries
8. Current Program Status of Post-Completion-Point HIPCs
Figures
Impact of G-8 Proposal on HIPCs, 2004
Boxes
1. The PRGF Reserve Account
2. Financial Impact of Use of SDA Resources
3. Demand Estimates for PRGF Resources
Appendix
Summary of Bilateral Contributions to the PRGF and PRGF-HIPC Trusts