In December 1999, the World Bank (the Bank) and the International Monetary Fund (the Fund) introduced a new approach to their relations with low-income countries, centered around the development and implementation of poverty reduction strategies (PRS) by the countries as a precondition for access to debt relief and concessional financing from both institutions. These strategies were also expected to serve as a framework for better coordination of development assistance among other development partners.
Benin reached the completion point under the enhanced HIPC Initiative on March 24, 2003. Staff is of the view that all criteria have been met, and recommends that the Board determine that Benin qualifies for immediate debt relief under the MDRI.
Cambodia is not a HIPC country because its debt levels were below the relevant thresholds. It is, however, eligible under the MDRI because it had per capita annual GDP of below $380 as of 2004. No IDA relief is currently expected under the MDRI for non-HIPC countries. Staff is of the view that all criteria have been met, and recommends that the Board determine that Cambodia qualifies for immediate relief under the MDRI.