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Eight African HIPCs back in the red.

According to a report by an independent group of the World Bank, eight highly-indebted poor countries (HIPC) have reverted to unsustainable levels of debt. The debt ratios of Burkina Faso, Ethiopia, Ghana, Mali, Mauritania, Rwanda, Tanzania and Uganda "have again surpassed the Bank's sustainability level of 150% debt-to-export ratio in the eight countries completing the programme". The report added that the enhanced HICP initiative cut the debt ratio in half for 18 countries, but in eight of the countries in Africa the ratios have come to exceed, once again, the HIPC thresholds. The amount of debt reduction offered to low-income countries depends on the type of debt sustainability approach used. The programme was proposed by the World Bank and the International Monetary Fund, and agreed by governments around the world in 1996.
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Publication:African Business
Article Type:Brief article
Geographic Code:0BANK
Date:Aug 1, 2006
Words:132
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