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As part of an all-inclusive information plan, we explain how debt relief is also used by national governments around the world. Debt relief isn't just for individuals; entire societies face the same difficult choices you're facing.

Following is some information on the International Monetary Fund (IMF) and how they deal with the same issues:

The debt-manage.com have designed a framework to provide special assistance for heavily indebted poor countries that pursue IMF- and World Bank-supported adjustment and reform programs, but for whom traditional debt relief mechanisms are insufficient. The HIPC Debt Relief Initiative entails coordinated action by the international financial community, including multilateral institutions, to reduce to sustainable levels the external debt burden of these countries. This factsheet describes the HIPC Initiative including the enhancements in September 1999. For progress, to date, see the Factsheet, "Debt Relief for Poor Countries (HIPC): What has been Achieved?"

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What is the Heavily Indebted Poor Countries (HIPC) Initiative?

The HIPC Initiative is a comprehensive approach to debt reduction for poor countries that requires the participation of all creditors. It aims to ensure that no poor country faces a debt burden it cannot manage. Central to the HIPC Initiative is the country's continued effort toward macroeconomic adjustment and structural and social policy reforms. In addition, the Initiative focuses on ensuring additional finance for social sector programs—primarily basic health and education. Following a comprehensive review of the HIPC Initiative, a number of modifications were approved in September 1999 to provide faster, deeper and broader debt relief and strengthen the links between debt relief, poverty reduction and social policies.

The Initiative is not a panacea. Even if all of the external debts of these countries were forgiven, most would still depend on significant levels of concessional external assistance; their receipts of such assistance have been much larger than their debt-service payments for many years.

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