An Initiative for Heavily Indebted Poor Countries ("HIPC"). A Perspective on its Impact on the Bolivian Economy

Abstract

This article analyzes the so-called Initiative for Heavily Indebted and Very Poor Countries ("HIPC" using their acronyms in English) one of the most important programs with the greatest impact on the strudural adjustment of foreign debt. In this way, the first part discusses the fundamental goal of the Initiative and the conditions that a specific country should meet to obtain debt relief. The second part is limited to the specific process developed in Bolivia to get debt relief through the Initiative. The study of the Bolivian case allows comparing the result obtained when facing the conditions this country had to meet to get relief from multilateral lenders and that allow it to enjoy debt load at sustainable levels.