The International Monetary Fund (IMF) has amended its rules to allow poor countries that are in arrears to the institution to apply for debt relief based on strong economic policy performances.
Previously, those countries could not qualify for debt cancellation under the Heavily Indebted Poor Countries (HIPC) initiative until they had first paid off their debts to the IMF and the World Bank.
They should also have completed an IMF-backed economic program.
Economic progress under the program, known as a Staff Monitored Program, or SMP, will now, unlike previously, count as a track record when a country is seeking debt relief.
The amendment is aimed at giving these countries credit, in appropriate circumstances, for their record in implementing strong programs of macroeconomic stabilization and structural reform during the time when the Fund and/or other international institutions are securing the necessary financing assurances to enable arrears clearance and debt relief.
Kilde: www.worldbank.org
