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.