This update builds on IEG’s 2003 evaluation of the Heavily Indebted Poor Countries initiative. About $50 billion has been committed in nominal debt service relief under the Enhanced HIPC initiative to decision point countries, of which $15.4 billion has been committed since the previous evaluation. This evaluation finds that debt relief has become a significant vehicle of resource transfer to HIPC countries. But debt reduction alone is not a sufficient instrument to affect the multiple drivers of debt sustainability, which also requires improvements in repayment capacity. Maintaining policy performance is essential for countries not yet at completion point to reap the benefits of debt reduction.