Addis Ababa — A two-day seminar to discuss Phase II of the review of the Highly Indebted Poor Countries (HIPC) debt relief initiative convenes here tomorrow, under the theme 'Strengthening the Link between Debt Relief and Poverty Reduction'.

The seminar, organised jointly by the Economic Commission for Africa (ECA), the World Bank and the IMF, will bring together debt specialists from non-governmental organizations, governments, the United Nations as well as multilateral financial institutions. Significantly, invitees include experts from Least Developed Countries (LDCs) outside Africa which are also classified as highly indebted poor countries.

The HIPC initiative was jointly put together by the IMF and World Bank in September 1996 with the aim of reducing the debt burdens of all eligible countries to sustainable levels, provided they adopted and pursued strong programmes of adjustment and reform. The Initiative was intended to build on instruments available to the international community to deal decisively with the debt problems of the low-income countries and to allow them to exit from the rescheduling process.

To date, Uganda is the only African country to fully qualify for debt relief under HIPC, although negotiations are ongoing with several other countries in the region.

The first phase of the HIPC review, which addressed key features of the current framework (including depth of debt relief, timing and performance track record requirements), was completed in April 1999. Wide-ranging proposals for change were reviewed by the executive boards of the World Bank and the IMF. In April 1999 the Development and Interim Committees Ministerial Meetings agreed to the modification of the HIPC initiative to make it more inclusive and wide-ranging.

Phase II of the review will focus on how to strengthen the link between debt relief and poverty reduction. The link is a key feature of an enhanced debt relief programme in the context of the recent Cologne Debt Initiative and of the proposals that will be presented to the Development and Interim Committees of the World Bank and IMF at their Annual Meetings in September 1999.

Among other issues, tomorrow's seminar will discuss:

- The role of debt relief in achieving the internationally agreed poverty reduction targets set for 2015;

- Costing-out poverty reduction programmes and the impact of debt relief;

- Accountability and transparency in the use of debt relief savings;

- Targeting public expenditure programmes at the poor;

- Monitoring the effects of social expenditures;

- Delivering social services outside of the government: role of civil society;

For further information please contact Peter da Costa, Cabinet Office of the Executive Secretary, UN ECA, Addis Ababa, Ethiopia Tel: +251-1-51-58-26 (direct) or 251-1-51-72-00 (main switchboard), Ext. 354866 Fax: +251-1-51-22-33 E-Mail: ecainfo@un.org