Developing Countries: Debt Relief Initiative for Poor Countries Faces Challenges

Pursuant to a congressional request, GAO: (1) assessed whether the enhanced Heavily Indebted Poor Countries Initiative (HIPC) is likely to free up resources for poverty reduction and achieve the goal of debt sustainability; (2) described the strategy to strengthen the link between debt relief and poverty reduction and how this strategy is to be implemented; and (3) described the challenges creditors face in fully funding the enhanced initiative.