Zambia is on its way to get a debt aid package of $3.8 billion under the Highly-Indebted Poor Countries Initiative. The World Bank, which runs the HIPC Initiative together with the International Monetary Fund, announced that it already gave the plan its blessing. World Bank country manager Ohene Nyanin disclosed that both institutions will come out with a joint statement after the IMF board meets and decides on the debt relief package. According to the initiative?s guidelines, Zambia must first reach the so-called HIPC completion point when the country has fully complied with the conditions of the two multilateral institutions before it can have access to aid. Last February, the IMF announced that Zambia has met the poverty reduction and social targets, indicating that it is ready to give its consent to the planned debt relief.
Source: World Bank approves $3.8 bln in Zambia debt relief (Reuters)
