The World Bank and IMF have announced that Afghanistan has made sufficient reforms to now qualify for debt relief under the Heavily Indebted Poor Countries Initiative. The country will now have its public and private debt payments (on $12b in total debt) cut in half.
To qualify, Afghanistan had to meet several criteria: "face an unsustainable debt burden, beyond traditionally available debt-relief mechanisms"; "establish a track record of reform and sound policies through IMF- and IDA-supported programs"; and "have developed a Poverty Reduction Strategy Paper (PRSP) through a broad-based participatory process." MORE DETAILS ON HIPCI
The process continues as follows:
Once a country reaches its decision point, it may immediately begin receiving interim relief on its debt service falling due. In order to receive the full and irrevocable reduction in debt available under the HIPC Initiative, however, the country must: (i) establish a further track record of good performance under IMF- and IDA-supported programs; (ii) implement satisfactorily key reforms agreed at the decision point, and (iii) adopt and implement the PRSP for at least one year. Once a country has met these criteria, it can reach its completion point, at which time lenders are expected to provide the full debt relief committed at decision point.
Whether, Afghanistan is helped by World Bank and any by other banks. It is quite true that the country has to help itself. If we talk about ‘debt relief’ then poverty can not be decreased until it found the reason behind. Due to their expensive nature they don’t care for their budget and keep spending money and one day comes when they seek debt counseling assistance and related services. Mark one thing that whether companies have services such as Christian Debt Counseling,
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