Debt Relief and Beyond : Lessons Learned and Challenges Ahead

Heavily indebted low-income countries benefited from significant debt relief over the past decade. Under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI), assistance of about $117 billion in nominal terms had been committed to 35 HIPC as of end-April 2009. This debt relief represents about half of the 2007 Gross Domestic Product (GDP) of these countries, whose debt burden is expected to drop by more than 80 percent once full debt relief is granted. As a result of relief already provided, debt-service payments have plummeted and expenditures on pro-poor growth programs increased. The book is divided into four parts. Part one examines the design of debt-relief initiatives and provides evidence of its effect on education, health, and economic growth. Part two describes the risks and opportunities developing countries face following debt relief. It identifies how they can safeguard debt sustainability; describes the role of sovereign risk for private sector access to capital; and draws lessons from the experience of market-access countries on the links between sovereign debt and development. Part three examines the concept and various policy proposals of dealing with 'odious' debt. Part four looks at debt management, debt restructuring, and the interplay between debt and fiscal policies. It provides guidance on debut sovereign bond issues; examines the issuance and management of sub-national debt; describes the challenges of crafting fiscal policy and managing debt and oil revenues in a (temporarily) oil-rich country (the Republic of Congo); and draws lessons from Chile's experiences using debt swaps in the 1980s.

Bibliographic Details

Main Authors:	Primo Braga, Carlos A., Domeland, Dorte
Language:	English
Published:	World Bank 2009
Subjects:	ACCESS TO CAPITAL, ACCESS TO DEBT, AMOUNT OF DEBT, BAILOUT, BALANCE OF PAYMENTS, BALANCE SHEET, BILATERAL CREDITORS, BILATERAL DONORS, BOND INDEX, BOND ISSUANCES, BOND ISSUES, BOND SPREADS, BONDS, BUDGET CONSTRAINT, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INFLOWS, CAPITAL MARKET, CAPITAL MARKETS, CAPITALIZATION, CASH FLOWS, COMMERCIAL CREDITOR, COMMERCIAL CREDITORS, COMMERCIAL DEBT, COMMODITY PRICE, COMMODITY PRICES, CONFLICTS OF INTEREST, CONSUMER PRICE INDEX, CONTINGENT LIABILITIES, COST TO BORROWERS, COUNTRY RISK, COVERAGE OF DEBT, CREDIT AGENCIES, CREDIT RATINGS, CREDIT RISK, CREDIT TRANCHE, CREDITOR, DEBT, DEBT BURDEN, DEBT BURDEN OF LOW-INCOME COUNTRIES, DEBT BURDENS, DEBT CONVERSION, DEBT CONVERSIONS, DEBT CRISES, DEBT CRISIS, DEBT DATA, DEBT DECOMPOSITION, DEBT DYNAMICS, DEBT FORGIVENESS, DEBT INSTRUMENTS, DEBT LEVELS, DEBT MANAGEMENT, DEBT MANAGEMENT DEPARTMENT, DEBT MANAGEMENT SYSTEMS, DEBT MANAGERS, DEBT OVERHANG, DEBT POLICY, DEBT PROBLEM, DEBT PROBLEMS, DEBT RATIOS, DEBT REDUCTION, DEBT REDUCTIONS, DEBT RELIEF, DEBT RELIEF INITIATIVE, DEBT RESCHEDULING, DEBT RESTRUCTURING, DEBT SERVICE, DEBT SITUATION, DEBT STOCK, DEBT STOCKS, DEBT SUSTAINABILITY, DEBT SUSTAINABILITY ANALYSIS, DEBT SWAPS, DEBT-MANAGEMENT STRATEGIES, DEBT-MANAGEMENT STRATEGY, DEBT-RELIEF, DEBT-SERVICE, DEBT-SERVICE OBLIGATIONS, DEBTOR, DEBTOR COUNTRIES, DEBTOR COUNTRY, DEBTOR GOVERNMENT, DEBTOR GOVERNMENTS, DEBTORS, DEBTS, DEBT­ REDUCTION, DEBT ­BURDEN, DECENTRALIZATION, DEFAULT RISK, DEFICITS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DIRECT INVESTMENT, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKET, DOMESTIC DEBT, DOMESTIC DEBT MARKET, EMERGING ECONOMIES, EMERGING MARKETS, EQUITY ISSUANCE, EQUITY ISSUANCES, EVOLUTION OF DEBT, EXCESSIVE DEBT, EXCHANGE RATE, EXPENDITURES, EXPORT GROWTH, EXPORTERS, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL DEBT BURDEN, EXTERNAL DEBT BURDENS, EXTERNAL DEBT FINANCING, EXTERNAL DEBT MANAGEMENT, EXTERNAL DEBT SITUATION, EXTERNAL FINANCING, EXTERNAL LOANS, EXTERNAL OBLIGATIONS, EXTERNAL PUBLIC DEBT, EXTERNAL SHOCKS, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL MARKETS, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FOREIGN CAPITAL, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN INVESTORS, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GRACE PERIOD, GROSS DOMESTIC PRODUCT, HUMAN DEVELOPMENT, IMMUNIZATION, INDEBTED COUNTRIES, INDEBTED COUNTRY, INDEBTEDNESS, INFORMATION SYSTEMS, INITIAL DEBT, INSTITUTIONAL INVESTOR, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL STATISTICS, INVESTING, INVESTMENT FLOWS, LENDERS, LEVEL OF DEBT, LIABILITY, LIABILITY MANAGEMENT, LIQUID ASSETS, LIQUIDITY, LIQUIDITY CRISES, LIQUIDITY PROBLEMS, LOAN, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET ACCESS, MARKET COUNTRIES, MARKET PRICE, MONETARY FUND, MORAL HAZARD, MULTILATERAL CREDITORS, MULTILATERAL DEBT, MULTILATERAL DEBT RELIEF, NONPAYMENT, ODIOUS DEBT, OIL PRICE, OIL PRICES, POLICY RESPONSE, PORTFOLIO, PORTFOLIO FLOWS, PRINCIPAL-AGENT PROBLEM, PRIVATE CAPITAL, PRIVATE CAPITAL INFLOWS, PRIVATE CREDIT, PUBLIC DEBT, PUBLIC DEBT MANAGEMENT, PUBLIC DEBT STOCKS, PUBLIC FINANCES, PUBLIC SECTOR DEBT, PUBLIC SPENDING, REGULATORY FRAMEWORK, RELIEF MECHANISMS, RELIEF PACKAGE, REPAYMENT, REPAYMENT CAPACITY, RESERVE, RESERVE MANAGEMENT, RESERVES, RISK AVERSION, SHORT MATURITIES, SHORT-TERM DEBT, SHORT-TERM LIQUIDITY, SOFT BUDGET CONSTRAINT, SOVEREIGN BOND, SOVEREIGN BORROWERS, SOVEREIGN DEBT, SOVEREIGN DEBTS, SOVEREIGN DEFAULT, SOVEREIGN DEFAULTS, SOVEREIGN ISSUERS, SOVEREIGN RATINGS, SOVEREIGN RISK, STOCK OF DEBT, STOCK-OF-DEBT OPERATION, SUPPLEMENTAL FINANCING, SWAP, TRADITIONAL DEBT RELIEF, TRADITIONAL DEBT-RELIEF MECHANISMS, TREASURY,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20091111232053 https://hdl.handle.net/10986/2681
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