{
  "id": "RL30214",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL30214",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 101217,
      "date": "2000-02-01",
      "retrieved": "2016-05-24T20:39:18.641941",
      "title": "Debt Reduction: Initiatives for the Most Heavily Indebted Poor Countries",
      "summary": "Many developing nations have experienced declining economic conditions while accumulating\nhigher levels of debt, largely owed to multilateral public lending agencies, such as the World Bank\nand the IMF, and to foreign governments, including the United States. For the 41 nations that have\nbeen identified as the most Heavily Indebted Poor Countries (HIPC), external long-term debt rose\nrapidly from less than $7 billion in 1970, to $47 billion a decade later, to $158 billion by 1990, and\nto $169 billion today. The largest portion -- 85% -- is owed to public lenders (governments and\ninstitutions like the World Bank). Although roughly half of the HIPC long-term debt is owed to\nbilateral lenders, only 3.7% is owed to the United States.\n  Since 1989, the U.S., Japan, and major European governments, recognizing that the mounting\ndebt burden for some borrowers has undermined efforts to stimulate economic growth and to finance\nbasic social programs, have extended a series of increasingly broad debt relief arrangements. The\nmost recent initiative -- HIPC -- aims to reduce the debt burden of poor countries that have\ndemonstrated sound economic and social policy reforms to manageable, or \"sustainable\" levels that\ncan be serviced comfortably by export revenues and capital inflows. When it was launched, poor\ncountry debt relief proponents hailed the initiative for its comprehensive and integrated approach,\nespecially the inclusion of World Bank and IMF participation, and for its objective to provide lasting\ndebt solutions.\n  But after three years, only four countries fully qualified for HIPC debt reduction terms and\nstrong international pressure built to expand and deepen HIPC terms. Critics argued that it takes\ncountries too long to qualify, that the conditions for eligibility are inappropriate, and that the poverty\nreduction focus is insufficient. U.S. and other G-7 leaders forged an agreement for expanding HIPC\nat the June 18-20, 2000 summit in Germany, the contents of which were adopted by the World Bank\nand the IMF at their annual meetings in September. \n  Several legislative initiatives were introduced in 1999.  H.R. 1095  (Representative\nLeach), would reform HIPC by providing debt relief more quickly, to more countries, and in greater\namounts, with an emphasis on poverty reduction. Senator Mack introduced similar legislation\n( S. 1690 ), recommending that debt relief savings finance both poverty and economic\nreform activities. Other legislation includes  H.R. 2232  (Representative Waters),\n H.R. 3049  (Representatives McKinney and Rohrabacher),  H.R. 772 \n(Representative Jackson), and  S. 1636 , a modified companion measure to\n H.R. 772 (Senator Feingold).\n  As one of the final legislative issues of the first session, Congress agreed ( H.R. 3422 ), to $123 million for bilateral debt reduction in FY2000 and (in  H.R. 3425 ) to\nauthorize U.S. support for an off-market IMF gold sale to finance the Fund's participation in HIPC. \n(Each bill was incorporated into the Consolidated Appropraitions Act, FY2000,  P.L. 106-113 .) But\nlawmakers did not approve an additional $847 million requested by the President for debt relief\nthrough FY2003 and barred the U.S. to use any of the $123 million this year for multilateral debt\nreduction and contributions to the HIPC Trust Fund.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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  "topics": [
    "Foreign Affairs"
  ]
}