Progress Made in the HIPC Initiative


On April 22 and 23, 1997, the Executive Boards of the World Bank and the IMF approved Uganda’s eligibility for assistance under the HIPC Initiative. They agreed to an NPV debt-to-exports target of 202 percent for a completion point of April 1998. Based on this, Uganda is expected to receive assistance equivalent to around US$340 million (in April 1998 U.S. dollars), which represents a reduction in Uganda’s debt of 20 percent. The World Bank’s share of this assistance is around US$160 million and the IMF’s share of this assistance is around US$70 million. These amounts will be delivered in April 1998 subject to satisfactory assurances of action by Uganda’s other creditors and Uganda’s continued strong performance under its ESAF- and IDA-supported programs. The resulting total reduction in Uganda’s nominal debt service is likely to be much higher—depending on how the assistance is delivered—at around US$700 million.