The Heavily Indebted Poor Country (HIPC) Initiative is failing to deliver debt relief, reports the Financial Times (9/10/01). A World Bank report, which was not released due to the cancellation of the annual meeting, reveals that both multilateral and governmental creditors remain uncommitted to the process. Moreover, private companies are buying up debt and threatening legal action to force countries to pay, which may affect debt sustainability.
A lack of progress with implementing reforms is delaying full debt relief to 13 out of 23 countries already qualified, and progress remains slow in getting the remaining 17 countries into the process.
