U.S. action on debt relief is welcomed, enables IMF to meet contribution to HIPC
Sugisaki particularly welcomed the approval of legislation that will enable the IMF to meet its commitment to provide $2.2 billion toward the Heavily Indebted Poor Countries (HIPC) Initiative. “Faster and deeper debt relief is critical,” Sugisaki underscored. “Today’s action by the U.S. Congress will ensure that the IMF can finance its commitment to the HIPC Initiative. Without congressional approval, we would not have been able to fully utilize the resources available to us to meet our debt relief goals,” Sugisaki said.
The congressional action will enable the IMF to apply to the HIPC Initiative about $800 million, which represents the balance of investment income that would be generated from the IMF’s sale of 12.9 million ounces of gold. Previously, the U.S. Congress had authorized use of only a portion of the investment income.