Eligibility for the HIPC initiative was launched in 1996 with the goal to reduce foreign debt to sustainable levels.The IMF and World Bank estimated that the typical country that completed the program would see
A) its debt reduced by one quarter and its debt-service ratio cut by one third.
B) its debt reduced by one half and its debt-service ratio cut in half.
C) its debt reduced by one third and its debt-service ratio cut by one third.
D) its debt reduced by two thirds and its debt-service ratio cut in half.
E) its debt reduced by three quarters and its debt-service ratio cut by two thirds.

Question

Quizplus · Accepted Answer

The HIPC (Heavily Indebted Poor Countries) initiative aimed to reduce the debt of eligible countries by about two-thirds and cut their debt-service ratio in half, making their debt more manageable and sustainable.

Eligibility for the HIPC Initiative Was Launched in 1996 with the Goal