IDA15 MULTILATERAL DEBT RELIEF INITIATIVE (MDRI): UPDATE ON DEBT RELIEF BY IDA AND DONOR FINANCING TO DATE

Transcription

1 IDA15 MULTILATERAL DEBT RELIEF INITIATIVE (MDRI): UPDATE ON DEBT RELIEF BY IDA AND DONOR FINANCING TO DATE Resource Mobilization (FRM) February 2007

2 Selected Abbreviations and Acronyms AfDF FRM FY HIPC IDA IMF MDRI PAYG SDR African Development Fund Resource Mobilization Department Fiscal year Heavily Indebted Poor Countries International Monetary Fund Multilateral Debt Relief Initiative Pay-as-you-go Special Drawing Right

3 TABLE OF CONTENTS Executive Summary... i I. Introduction...1 II. Debt Relief by IDA under the MDRI...2 III. Donor Financing Commitments to the MDRI...3 Charts Chart 1: Chart 2: Chart 3: Updated Time Profile of Forgone Credit Reflows of IDA (FY06-44, USD million equiv.)...3 Level of Donor Financing Commitments to the HIPC Initiative (USD million equiv.)...4 Level of Donor Financing Commitments to the MDRI (USD million equiv.)...6 Tables Table A: MDRI Financing Summary IoCs Received (USD)...5 Table 1: Table 2: Table 3: Table 4: Table 5: Total Debt Relief to be Delivered by IDA: Estimated Volume since Inception of the HIPC Initiative (FY ) Table 1a: in SDR...7 Table 1b: in USD...8 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY07-44) By HIPC Country Table 2a: in SDR...9 Table 2b: in USD...10 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By Fiscal Year Table 3a: in SDR...11 Table 3b: in USD...12 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment Table 4a: in SDR...13 Table 4b: in USD...14 Estimated HIPC Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment Table 5a: in SDR...15 Table 5b: in USD...16

4 - ii - Table 6: Estimated MDRI Debt Relief by IDA, from IDA14 Period (FY07-44) By HIPC Country and IDA Replenishment Table 6a: in SDR...17 Table 6b: in USD...18 Table 7: MDRI Financing Summary IoCs Received (SDR equiv. millions)...19 Table 8: Donor Pledges to the MDRI Table 8a: in SDR...20 Table 8b: in National Currency...21 Table 9: Donor Financing of IDA s Forgone Reflows due to the MDRI: Total Financing Commitments Received Table 9a: in SDR...22 Table 9b: in USD...23 Table 9c: in National Currency...24 Table 10: Donor Financing of IDA s Forgone Reflows due to the MDRI: Firm Financing Commitments Received (Unqualified IoCs), by Period Table 10a: in SDR...25 Table 10b: in USD...26 Table 10c: in National Currency...27 Table 11: Irrevocable MDRI Debt Relief Provided by IDA vs. Firm Donor Financing Received Table 11a: in SDR...28 Table 11b: in USD...29.

5 EXECUTIVE SUMMARY 1. Since the inception of the HIPC Initiative in 1996, total debt relief provided by IDA under the HIPC Initiative and the MDRI is currently estimated at about USD 53.6 billion, including USD 36.4 billion under the MDRI. The current MDRI estimate is about USD 250 million lower than the original estimates at the time of MDRI approval in mid As of December 31, 2006, 21 HIPC countries have reached the HIPC completion point, receiving a total of USD 40.3 billion of irrevocable debt relief by IDA, equivalent to about 75 percent of the total debt relief to be provided by IDA. Of this amount, USD 28.3 billion has been provided under the MDRI and the balance of USD 12.0 billion under the HIPC Initiative. The remaining 19 HIPC countries will benefit from the MDRI upon reaching the completion point. 3. As of December 31, 2006, donors provided unqualified, firm financing commitments representing 47 percent of the originally projected MDRI costs of IDA over the 10-year disbursement horizon of IDA14 (FY07-16). Another 26 percent of forgone credit reflows over that horizon are covered by qualified financing commitments, bringing total donor financing commitments to 73 percent of original MDRI costs over the 10-year disbursement horizon of IDA14. Over the four decades of MDRI implementation, aggregate donor financing commitments received are currently equivalent to 66 percent of total original MDRI costs of IDA; this includes firm, unqualified financing commitments from donors of USD 3.8 billion, covering 10 percent of total MDRI costs over four decades. 4. Thirty-four donor countries have pledged to contribute to the MDRI replenishment of IDA. As of December 31, 2006, 28 of these donors have provided their Instrument of Commitment, for a total commitment volume of USD 24.3 billion. This compares with total target contributions for all donors of USD 33.7 billion net of the structural financing gap, based on the original MDRI cost estimates. Donors will need to discuss how to close the structural financing gap of 8.0 percent under the MDRI replenishment, which represents USD 2.9 billion based on the original MDRI cost estimates. 5. As of December 31, 2006, donors have provided firm financing commitments of USD 3.8 billion over the four decades of MDRI implementation. This compares against a volume of irrevocable debt relief provided by IDA under the MDRI of currently USD 28.3 billion.

6 MULTILATERAL DEBT RELIEF INITIATIVE (MDRI): UPDATE ON DEBT RELIEF BY IDA AND DONOR FINANCING TO DATE I. INTRODUCTION 1. The Multilateral Debt Relief Initiative (MDRI) was proposed by G8 Heads of States in July 2005 and subsequently welcomed by the Development Committee in September The MDRI provides 100 percent cancellation of IDA, AfDF, and IMF debt for countries that reach the HIPC completion point. Its objectives are twofold: Deepening debt relief to HIPCs, while safeguarding the long-term financial capacity of IDA and the AfDF; and encouraging the best use of additional donor resources for development by allocating them to low-income countries on the basis of policy performance. Debt relief provided under the MDRI is in addition to existing debt relief commitments by IDA and other creditors under the Enhanced HIPC Debt Initiative. Under the financing package for the MDRI, donors agreed to finance IDA s MDRI costs on a dollar-for-dollar basis. 2. The Board of Executive Directors of IDA approved IDA s participation in the MDRI on March 28, IDA s Board of Governors adopted on April 21, 2006 the Resolution authorizing an increase in IDA resources to cover MDRI-related costs. 2 The Board of Executive Directors of IDA approved IDA s implementation of the MDRI as of July 1, 2006, the beginning of fiscal year The MDRI replenishment of IDA became effective as of August 4, This report responds to the request by donors for ongoing monitoring of donor contributions to the MDRI and to review the status of MDRI financing at the beginning of the IDA15 discussions. 4 It also responds to the request by IDA Deputies at the IDA14 Mid-term Review in November 2006 for a review of the status of MDRI implementation by IDA. Section II of this report provides updated estimates of the volume of debt relief provided by IDA under the MDRI. Section III offers updated information on donor financing commitments received under the MDRI replenishment of IDA. 4. The data contained in this report are. They are shown in nominal value terms as this forms the basis for donors compensatory contributions to IDA over time. Data are presented in SDR and in USD equivalent terms, as well as in national currency terms, where applicable IDA s Implementation of the Multilateral Debt Relief Initiative, IDA/R , March 17, Additions to Resources: Financing the Multilateral Debt Relief Initiative, Resolution No. 211 adopted on April 21, Implementation Start Date of the Multilateral Debt Relief Initiative (MDRI), IDA/R , June 9, See paras. 25 and 40, respectively, of Resolution No. 211 adopted on April 21, The MDRI cancels the portion of IDA credits remaining after applying HIPC debt relief. The bulk of IDA credits cancelled are denominated in SDR, while HIPC debt relief is denominated in USD terms. As a result, the USD equivalent volume of debt relief provided under the MDRI will vary with foreign exchange rates. Current cost estimates are based on the foreign exchange reference rate of USD/SDR agreed under the MDRI replenishment of IDA.

7 - 2 - II. DEBT RELIEF BY IDA UNDER THE MDRI 5. Total debt relief. Since the inception of the HIPC Initiative in 1996, total debt relief to be provided by IDA under HIPC and MDRI combined is currently estimated at about USD 53.6 billion (see the enclosed Table 1b) This total amount can be broken down into two elements: From July 1, 2006, over the implementation period of the MDRI (FY07-44), IDA is estimated to provide a total of USD 49.6 billion in debt relief, including USD 36.4 billion under the MDRI and USD 13.2 billion under the HIPC Initiative. Donors have committed to finance these amounts over time as reflow losses occur. In addition, prior to July 1, 2006, IDA has already provided about USD 4.0 billion of HIPC debt relief. The bulk of this amount has been financed through IBRD net income transfers to the HIPC Trust Fund, complemented by bilateral donor financing. 6. Irrevocable debt relief to completion point HIPCs. As of December 31, 2006, 21 HIPC countries have reached the HIPC completion point. These countries have received a total of USD 40.3 billion of irrevocable debt relief from IDA, equivalent to about 75 percent of the total debt relief to be provided by IDA. Of this amount, an estimated USD 28.3 billion has been provided under the MDRI and the balance of USD 12.0 billion under the HIPC Initiative (see Table 1b). 7. Donor financing for IDA s debt relief costs. Donor financing for IDA s debt relief under the HIPC Initiative was introduced in the IDA14 replenishment, beginning in FY06. Donor financing of MDRI-related costs of IDA began in FY07, at the start of IDA s implementation of the MDRI, and is scheduled to end by FY44 when the last IDA credit eligible for cancellation under the MDRI would have matured. Over the period FY06-44, IDA will provide an estimated total amount of debt relief of USD 50.1 billion (see Table 2b); this amount is composed of USD 49.6 billion of debt relief over the MDRI implementation period (FY07-44) plus HIPC debt relief costs during FY06 of USD 0.5 billion. IDA s debt relief is broken down into an estimated credit principal volume of USD 44.9 billion (representing about 90 percent of total debt relief) and USD 5.2 billion of forgone service charges (see Table 2b). For the 21 completion-point countries, SDR-denominated credits represent about 95 percent of total credits cancelled, with USD-denominated credits representing the balance Estimates of debt relief under the HIPC Initiative and the MDRI are for potentially eligible countries. Estimates are subject to change as a result of future reviews of countries debt stocks and the timing of expected decision and completion point dates. Current estimates for IDA s HIPC and MDRI debt relief are based on a list of 40 HIPC countries, including 10 pre-decision point HIPCs that meet the income and indebtedness criteria based on end-2004 figures and that might wish to be considered for HIPC debt relief. Prior estimates for IDA s MDRI debt relief included 42 potential HIPC countries. Following a meeting of the IDA Board on the HIPC Sunset Clause on September 7, 2006, two countries originally included in list of 42 HIPCs have been excluded from this list: Myanmar, due to insufficient data to assess debt ratios against the HIPC thresholds; and Lao PDR, which had expressed its desire not to participate in the HIPC Initiative. This amount excludes USD 0.8 billion of IDA credit arrears of pre-decision point HIPCs. IDA credits approved prior to August 1, 1980 were denominated in US Dollars.

8 Time profile of forgone credit reflows. The annual volume of forgone credit reflows of IDA under the HIPC Initiative equaled USD 513 million in FY06 (see Table 3b). For FY07, with the MDRI being implemented, the combined volume is expected to increase to an estimated USD 938 million. Annual volumes of forgone credit reflows of IDA due to the HIPC Initiative and the MDRI are projected to increase to USD 2.0 billion by FY23, then decrease to about USD 1.0 billion by FY34 and further to zero after FY44. Over the first decade of FY06-16, IDA is projected to forgo credit reflows of about USD 15.4 billion, equivalent to about 31 percent of the total volume of forgone credit reflows over the four decades of FY Chart 1 illustrates the updated time profile of forgone credit reflows of IDA due to the HIPC Initiative and the MDRI. Chart 1: Updated Time Profile of Forgone Credit Reflows of IDA (FY06-44, USD million equiv.) 2,000 1,800 1,600 1,400 1,200 1, MDRI Costs HIPC Costs FY06 FY09 FY12 FY15 FY18 FY21 FY24 FY27 FY30 FY33 FY36 FY39 FY42 9. Credit reflows forgone by IDA replenishment period. Over the IDA14 commitment period (FY06-08), the total volume of forgone credit reflows due to debt relief provided by IDA is estimated at USD 2,590 million (see Table 4b). This includes forgone credit reflows due to the HIPC Initiative of USD 1,798 million (see Table 5b). That HIPC-related amount over three years is being financed under the IDA14 replenishment framework through donor contributions and through a final transfer from IBRD net income. Over the first decade of the MDRI (FY07-16), the volume of IDA s forgone credit reflows due to debt relief under the MDRI is estimated at USD 6,757 million (see Table 6b). Donors have agreed to finance this 10-year amount under the MDRI replenishment, preferably through firm financing commitments. III. DONOR FINANCING COMMITMENTS TO THE MDRI 10. This section provides information about the current status of donor financing commitments received for IDA s debt relief costs. These donor commitments are based on estimates for HIPC costs of IDA as established at the time of concluding the IDA14 discussions in February 2005, and estimates for MDRI costs of IDA as of the time of concluding the MDRI

9 - 4 - replenishment discussions in March 2006, respectively. Original cost estimates are being used in this section for ease of reference and to ensure comparability of volumes of donor financing received over time. Section II provided updated cost estimates,. IDA s cost estimates for debt relief will be updated once again as of June 30, 2007, then providing the basis for donors further financing commitments during the IDA15 period. 11. HIPC financing within IDA14. IDA14 was the first replenishment for donors to finance IDA s forgone credit reflows due to the HIPC Initiative. 10 Donor financing of HIPC costs occurs on a pay-as-you-go basis, over the 3-year commitment period of each IDA replenishment. Over the 3-year commitment period of IDA14 (FY06-08), IDA forgoes an estimated USD 1,798 million of credit reflows due to the HIPC Initiative. After using remaining resources of USD 384 million from prior IBRD transfers to the HIPC Trust Fund, a balance of about USD 1,414 million of HIPC costs during FY06-08 will be financed by donor commitments received under IDA14. Chart 2 illustrates the time profile of HIPC-related costs of IDA and the current level of donor financing commitments received. Chart 2: Level of Donor Financing Commitments to the HIPC Initiative (USD million equiv.) 1, Not Financed Qualified Donor Financing Unqualified Donor Financing FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26 FY The MDRI replenishment of IDA. To finance IDA s forgone credit reflows under the MDRI, donors established a separate MDRI replenishment, spanning four decades (FY07-44). In order to preserve IDA s advance commitment capacity - under which IDA uses its stream of available future credit reflows to back disbursements on approved credits and grants - donors 10 In IDA14, donors reaffirmed the intent of the Development Committee that HIPC costs should not damage IDA s finances (see: Development Committee Communique, dated September 27, 1999). In IDA14, donors also supported the arrangement whereby the IDA Deputies had agreed that the financing of IDA s HIPC debt relief costs would be addressed in 2004, in conjunction with the IDA14 replenishment discussions (see: Chairman s Summary, HIPC Technical Meeting, Paris, October 24, 2002).

10 - 5 - acknowledged the need to provide unqualified, firm MDRI financing commitments over a rolling decade, thereby matching the disbursement period of each future IDA replenishment. 11 The long-term nature of MDRI financing commitments may present a challenge for some donors who cannot make firm commitments over such a long time period due to legislative or budgetary constraints. 13. MDRI financing summary. As of December 31, 2006, donors have provided unqualified, firm financing commitments representing 47 percent of the original projected MDRI costs over the 10-year disbursement horizon of IDA14 (FY07-16) (see Table A below and enclosed Table 7) 12. Another 26 percent of forgone credit reflows over that horizon are covered by qualified financing commitments, bringing total donor financing commitments to 73 percent of MDRI costs over the 10-year disbursement horizon of IDA Over the four decades of MDRI implementation, aggregate donor financing commitments received are currently equivalent to 66 percent of total estimated MDRI costs of IDA; this includes firm, unqualified financing commitments covering 10 percent of total estimated MDRI costs over four decades. Chart 3 illustrates the time profile of MDRI-related costs of IDA and the current level of donor financing commitments received. Table A: MDRI Financing Summary IoCs Received USD million equiv. Financing received from IDA donors Remaining IDA14 Remainder of First Sub-total for Subsequent 3 Total MDRI Costs Period Decade First Decade Decades (FY07-08) (FY09-16) (FY07-16) (FY17-44) (FY07-44) USDm in % USDm in % USDm in % USDm in % USDm in % Unqualified Financing % 3, % 3, % % 3, % Qualified Financing % 1, % 2, % 18, % 20, % Subtotal % 4, % 5, % 18, % 24, % To be committed % 2, % 2, % 10, % 12, % Total % 6, % 7, % 28, % 36, % Note: Based on original MDRI cost estimates The annual encashment of donor contributions to finance MDRI-related costs of IDA will occur on a pay-asyou-go basis, matching the actual forgone reflows of IDA during each year. In addition, in January 2007, IDA received the Instrument of Commitment of the Republic of Korea for an amount of USD equiv. 334 million, including an unqualified commitment for the first 2 years of MDRI financing. In February 2007, Luxembourg unqualified all remaining amounts of its 40-year MDRI commitment. Under the MDRI replenishment of IDA, donors agreed that a qualified financing commitment could be provided without prior parliamentary or legislative approval. This differs from regular replenishments of IDA where issuance of a qualified commitment occurs after required parliamentary or legislative authorization.

11 - 6 - Chart 3: Level of Donor Financing Commitments to the MDRI (USD million equiv.) 1,800 1,600 1,400 Not Financed 1,200 1, Qualified Donor Financing Unqualified Donor Financing FY06 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26 FY28 FY30 FY32 FY34 FY36 FY38 FY40 FY42 FY Donor pledges to the MDRI. A total of 34 donor countries have pledged to contribute to the MDRI replenishment of IDA. As of December 31, 2006, 28 of these donor countries have provided an Instrument of Commitment for the MDRI replenishment, while the remaining 6 donor countries are in the process of securing required approvals to issue their Instrument of Commitment (see Tables 8a/b). 15. Total financing commitments received. As of December 31, 2006, donors have provided total Instruments of Commitments (qualified and unqualified) to the MDRI for a volume of USD 24.3 billion (see Table 9b). This compares with total target contributions for all donors of about USD 33.7 billion net of the structural financial gap, based on the original MDRI cost estimates. Donors will need to discuss how to close the structural financing gap (of currently 8.0 percent) under the MDRI replenishment, which represents about USD 2.9 billion based on the original MDRI cost estimates. 16. Firm financing commitments received. As of December 31, 2006, donors have provided firm, unqualified financing commitments to the MDRI of USD 3.8 billion over the four decades of MDRI implementation (see Table 10b). This compares against a volume of irrevocable debt relief provided by IDA under the MDRI of currently USD 28.3 billion (see Table 11b).

12 - 7 - Total Debt Relief to be Delivered by IDA: Estimated Volume since Inception of the HIPC Initiative (FY ) (SDReq. millions) Table 1a Total HIPC Debt Relief MDRI Debt Relief HIPC + MDRI Costs Debt Relief Total HIPC Delivered To be Delivered To be Delivered To be Financed by Donors by IDA pre-july 2006 post July 1, 2006 Post July 1, 2006 Post July 1, 2006 (A+B+C) (A+B) (A) (B) (C) (B+C) Completion Point Countries (21) Benin Bolivia 1, ,033 1,145 Burkina Faso Cameroon Ethiopia 2, ,585 2,339 Ghana 3, ,027 2,863 Guyana Honduras Madagascar 1, ,205 1,442 Malawi 1, ,421 Mauritania Mali 1, Mozambique 1, Nicaragua Niger Rwanda Senegal 1, ,263 1,317 Republic of Sierra Leone Tanzania 2, ,912 2,506 Uganda 2, ,890 2,231 Zambia 1, ,274 1,773 Sub-Total 27,222 8,088 2,451 5,637 19,134 24,771 Decision Point Countries (9) Burundi Chad Congo, Republic of Congo, Democratic Republic of 1, ,292 Gambia, The Guinea Guinea-Bissau Haiti Sao Tome and Principe Sub-Total 4,290 1, ,507 2,609 4,116 Pre-Decision Point Countries (10) Central African Republic Cote d'ivoire* 1, ,036 1,298 Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-Total 4,659 1,773-1,773 2,887 4,659 Total 36,171 11,542 2,625 8,916 24,629 33,546 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

13 - 8 - Total Debt Relief to be Delivered by IDA: Estimated Volume since Inception of the HIPC Initiative (FY ) (USDeq. millions) Table 1b Total HIPC Debt Relief MDRI Debt Relief HIPC + MDRI Costs Debt Relief Total HIPC Delivered To be Delivered To be Delivered To be Financed by Donors by IDA pre-july 2006 post July 1, 2006 Post July 1, 2006 Post July 1, 2006 (A+B+C) (A+B) (A) (B) (C) (B+C) Completion Point Countries (21) Benin Bolivia 1, ,526 1,692 Burkina Faso 1, Cameroon 1, ,024 Ethiopia 3,630 1, ,116 2,342 3,458 Ghana 4,440 1, ,238 2,994 4,233 Guyana Honduras 1, ,194 1,251 Madagascar 2, ,780 2,131 Malawi 2, ,223 2,102 Mauritania Mali 1, ,270 1,416 Mozambique 2,374 1,055 1, ,319 1,349 Nicaragua 1, ,105 Niger 1, ,093 Rwanda 1, Senegal 2, ,866 1,947 Republic of Sierra Leone Tanzania 3,981 1, ,824 3,704 Uganda 3, ,792 3,298 Zambia 2, ,882 2,620 Sub-Total 40,320 12,051 3,702 8,349 28,268 36,617 Decision Point Countries (9) Burundi Chad Congo, Republic of Congo, Democratic Republic of 2,010 1, ,910 Gambia, The Guinea 1, ,100 1,268 Guinea-Bissau Haiti Sao Tome and Principe Sub-Total 6,348 2, ,231 3,854 6,085 Pre-Decision Point Countries (10) Central African Republic Cote d'ivoire* 1, ,531 1,919 Eritrea Kyrgyz Republic Liberia* Nepal 1, ,314 Somalia* Sudan* 1, ,062 Togo* Union of the Comoros Sub-Total 6,886 2,621-2,621 4,264 6,886 Total 53,553 17,166 3,965 13,201 36,387 49,588 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

14 - 9 - Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country (SDReq. million) Table 2a Actual/Estimated Total Debt HIPC MDRI Credit Currency Completion Relief Debt Debt Principal Charges SDR USD Completion Point countries (21) Point Date by IDA Relief Relief Benin 03/31/ Bolivia 06/30/2001 1, ,033 1, , Burkina Faso 04/30/ Cameroon 04/30/ Ethiopia 04/30/2004 2, ,585 2, , Ghana 07/31/2004 2, ,027 2, , Guyana 12/31/ Honduras 04/30/ Madagascar 10/31/2004 1, ,205 1, , Malawi 08/31/2006 1, , , Mauritania 03/31/ Mali 06/30/ Mozambique 09/30/ Nicaragua 01/31/ Niger 06/30/ Rwanda 06/30/ Senegal 04/30/2004 1, ,263 1, , Republic of Sierra Leone 12/31/ Tanzania 11/30/2001 2, ,912 2, , Uganda 05/31/2000 2, ,890 2, ,251 - Zambia 04/30/2005 1, ,274 1, , Sub-total 25,060 5,926 19,134 22,347 2,712 23,816 1,244 Decision Point countries (9) Burundi 06/30/ Chad 12/30/ Congo, Republic of 12/30/ Congo, Democratic Republic of 06/30/2007 1, , Gambia, The 05/31/ Guinea 05/30/ Guinea-Bissau 12/30/ Haiti 10/30/ Sao Tome and Principe 03/31/ Sub-total 4,166 1,557 2,609 3, Pre-decision Point countries (10) Central African Republic 06/30/ Cote d'ivoire* 05/30/2010 1, ,036 1, Eritrea 12/30/ Kyrgyz Republic 02/28/ Liberia* 06/30/ Nepal 12/30/ Somalia* 06/30/ Sudan* 06/30/ Togo * 10/31/ Union of the Comoros 05/30/ Sub-total 4,659 1,773 2,887 4, GRAND TOTAL 33,885 9,256 24,629 30,339 3,546 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

15 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country (USDeq. million) Table 2b Actual/Estimated Total Debt HIPC MDRI Credit Currency Completion Relief Debt Debt Principal Charges SDR USD Completion Point countries (21) Point Date by IDA Relief Relief Benin 03/31/ Bolivia 06/30/2001 1, ,526 1, , Burkina Faso 04/30/ Cameroon 04/30/2006 1, Ethiopia 04/30/2004 3,516 1,175 2,342 3, , Ghana 07/31/2004 4,288 1,293 2,994 3, , Guyana 12/31/ Honduras 04/30/2005 1, ,194 1, , Madagascar 10/31/2004 2, ,780 1, , Malawi 08/31/2006 2, ,223 1, , Mauritania 03/31/2003 1, ,270 1, , Mali 06/30/ Mozambique 09/30/2001 1, ,319 1, ,359 - Nicaragua 01/31/2004 1, , Niger 06/30/2004 1, , Rwanda 06/30/ Senegal 04/30/2004 1, ,866 1, , Republic of Sierra Leone 12/31/ Tanzania 11/30/2001 3, ,824 3, , Uganda 05/31/2000 3, ,792 2, ,327 - Zambia 04/30/2005 2, ,882 2, , Sub-total 37,054 8,786 28,268 33,044 4,010 35,218 1,836 Decision Point countries (9) Burundi 06/30/ Chad 12/30/ Congo, Republic of 12/30/ Congo, Democratic Republic of 06/30/2007 1, , Gambia, The 05/31/ Guinea 05/30/2007 1, ,100 1, Guinea-Bissau 12/30/ Haiti 10/30/ Sao Tome and Principe 03/31/ Sub-total 6,161 2,307 3,854 5, Pre-decision Point countries (10) Central African Republic 06/30/ Cote d'ivoire* 05/30/2010 1, ,531 1, Eritrea 12/30/ Kyrgyz Republic 02/28/ Liberia* 06/30/ Nepal 12/30/2010 1, , Somalia* 06/30/ Sudan* 06/30/2010 1, Togo * 10/31/ Union of the Comoros 05/30/ Sub-total 6,886 2,621 4,264 6, GRAND TOTAL 50,101 13,714 36,387 44,859 5,242 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

16 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By Fiscal Year (SDReq. million) Table 3a Total Of which Of which 21 CP HIPCs 9 DP HIPCs 10 pre-dp HIPCs 40 Countries HIPC MDRI Principal Charges FY FY FY FY FY FY , FY , FY , FY , FY , , FY , , Subtotal, to FY16 7,727 1,321 1,381 10,430 5,856 4,574 8,514 1,915 FY , , FY , , FY , , FY , , FY , ,043 1, FY , ,136 1, FY , ,191 1, FY , ,190 1, FY , ,183 1, FY , ,185 1, FY , ,209 1, FY , ,199 1, FY , ,133 1, FY , ,058 1, FY FY FY FY FY FY FY FY FY FY FY FY FY FY Total, FY ,060 4,166 4,659 33,885 9,256 24,629 30,339 3,546 Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

17 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By Fiscal Year (USDeq. million) Table 3b Total Of which Of which 21 CP HIPCs 9 DP HIPCs 10 pre-dp HIPCs 40 Countries HIPC MDRI Principal Charges FY FY FY , FY , , FY10 1, , , FY11 1, , , FY12 1, , , FY13 1, , , FY14 1, , , FY15 1, , , FY16 1, , , Subtotal, to FY16 11,447 1,958 2,043 15,448 8,690 6,757 12,615 2,833 FY17 1, , , FY18 1, , ,037 1, FY19 1, , ,087 1, FY20 1, , ,312 1, FY21 1, , ,541 1, FY22 1, , ,679 1, FY23 1, , ,759 1, FY24 1, , ,758 1, FY25 1, , ,747 1, FY26 1, , ,751 1, FY27 1, , ,787 1, FY28 1, , ,772 1, FY29 1, , ,674 1, FY30 1, , ,563 1, FY31 1, , ,418 1, FY , ,282 1, FY , ,140 1, FY , FY FY FY FY FY FY FY FY FY FY Total, FY ,054 6,161 6,886 50,101 13,714 36,387 44,858 5,242 Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

18 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment (SDReq. million) Table 4a HIPC and MDRI Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY06-08 FY09-11 FY12-14 FY06-16 FY06-44 Completion Point countries (21) Benin Bolivia ,154 Burkina Faso Cameroon Ethiopia ,377 Ghana ,900 Guyana Honduras Madagascar ,455 Malawi ,438 Mali Mauritiania Mozambique Nicaragua Niger Rwanda Senegal ,329 Sierra Leone Tanzania ,538 Uganda ,251 Zambia ,797 Sub-total 1,447 2,069 2,451 7,727 25,060 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of ,315 Gambia, The Guinea Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,321 4,166 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* ,298 Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-total ,381 4,659 GRAND TOTAL 1,727 2,847 3,415 10,430 33,885 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

19 Estimated HIPC and MDRI Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment (USDeq. million) Table 4b HIPC and MDRI Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY06-08 FY09-11 FY12-14 FY06-16 FY06-44 Completion Point countries (21) Benin Bolivia ,706 Burkina Faso Cameroon ,027 Ethiopia ,033 3,516 Ghana ,402 4,288 Guyana Honduras ,261 Madagascar ,151 Malawi ,126 Mali ,431 Mauritiania Mozambique ,359 Nicaragua ,118 Niger ,109 Rwanda Senegal ,965 Sierra Leone Tanzania ,243 3,753 Uganda ,015 3,327 Zambia ,657 Sub-total 2,168 3,056 3,621 11,447 37,054 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of ,945 Gambia, The Guinea ,281 Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,958 6,161 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* ,919 Eritrea Kyrgyz Republic Liberia* Nepal ,314 Somalia* Sudan* ,062 Togo* Union of the Comoros Sub-total ,043 6,886 GRAND TOTAL 2,590 4,206 5,045 15,448 50,101 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

20 Estimated HIPC Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment (SDReq. million) Table 5a HIPC Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY06-08 FY09-11 FY12-14 FY06-16 FY06-44 Completion Point countries (21) Benin Bolivia Burkina Faso Cameroon Ethiopia Ghana Guyana Honduras Madagascar Malawi Mali Mauritiania Mozambique Nicaragua Niger Rwanda Senegal Sierra Leone Tanzania Uganda Zambia Sub-total 939 1,104 1,205 4,043 5,926 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of Gambia, The Guinea Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,557 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-total ,773 GRAND TOTAL 1,190 1,691 1,792 5,856 9,256 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

21 Estimated HIPC Debt Relief by IDA, from IDA14 Period (FY06-44) By HIPC Country and IDA Replenishment (USDeq. million) Table 5b HIPC Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY06-08 FY09-11 FY12-14 FY06-16 FY06-44 Completion Point countries (21) Benin Bolivia Burkina Faso Cameroon Ethiopia ,175 Ghana ,293 Guyana Honduras Madagascar Malawi Mali Mauritiania Mozambique Nicaragua Niger Rwanda Senegal Sierra Leone Tanzania Uganda Zambia Sub-total 1,419 1,632 1,780 6,004 8,786 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of Gambia, The Guinea Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,216 2,307 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-total ,470 2,621 GRAND TOTAL 1,798 2,499 2,647 8,690 13,714 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

22 Estimated MDRI Debt Relief by IDA, from July 2006 (FY07-44) By HIPC Country and IDA Replenishment (SDReq. million) Table 6a MDRI Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY07-08 FY09-11 FY12-14 FY07-16 FY07-44 Completion Point countries (21) Benin Bolivia ,033 Burkina Faso Cameroon Ethiopia ,585 Ghana ,027 Guyana Honduras Madagascar ,205 Malawi Mali Mauritiania Mozambique Nicaragua Niger Rwanda Senegal ,263 Sierra Leone Tanzania ,912 Uganda ,890 Zambia ,274 Sub-total ,246 3,684 19,134 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of Gambia, The Guinea Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,609 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* ,036 Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-total ,887 GRAND TOTAL 536 1,156 1,623 4,574 24,629 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

23 Estimated MDRI Debt Relief by IDA, from July 2006 (FY07-44) By HIPC Country and IDA Replenishment (USDeq. million) Table 6b MDRI Relief by IDA IDA14 IDA15 IDA16 First Decade Total Relief FY07-08 FY09-11 FY12-14 FY07-16 FY07-44 Completion Point countries (21) Benin Bolivia ,526 Burkina Faso Cameroon Ethiopia ,342 Ghana ,994 Guyana Honduras ,194 Madagascar ,780 Malawi ,223 Mali ,270 Mauritiania Mozambique ,319 Nicaragua Niger Rwanda Senegal ,866 Sierra Leone Tanzania ,824 Uganda ,792 Zambia ,882 Sub-total 749 1,424 1,841 5,443 28,268 Decision Point countries (9) Burundi Chad Congo, Rep. of Congo, Dem. Rep. of Gambia, The Guinea ,100 Guinea-Bissau Haiti Sao Tome and Principe Sub-total ,854 Pre-decision Point countries (10) Central African Republic Cote d'ivoire* ,531 Eritrea Kyrgyz Republic Liberia* Nepal Somalia* Sudan* Togo* Union of the Comoros Sub-total ,264 GRAND TOTAL 792 1,708 2,397 6,757 36,387 * Excludes arrears on principal and charges overdue which will need to be cleared prior to the country reaching decision point under the HIPC Initiative. Note: Foreign exchange rates are based on MDRI and HIPC FX reference rates.

24 MDRI Financing Summary IoCs Received * (SDR equivalent millions) Table 7 Financing received from IDA donors Remaining IDA14 Remainder of First Sub-total for Subsequent 3 Total MDRI Costs Period Decade First Decade Decades (FY07-08) (FY09-16) (FY07-16) (FY17-44) (FY07-44) SDRm in % SDRm in % SDRm in % SDRm in % SDRm in % Unqualified Financing % 2, % 2, % % 2, % Qualified Financing % 1, % 1, % 12, % 13, % Subtotal % 3, % 3, % 12, % 16, % To be committed % 1, % 1, % 6, % 8, % Total % 4, % 5, % 19, % 24, % * Based on original MDRI cost estimates

25 Donor Pledges to the MDRI* (SDR millions) Table 8a Remaining IDA14 Period Remainder of First Decade Subsequent 3 Decades Grand Total Donors (FY07-08) (FY09-16) (FY17-44) (FY07-44) Qualified Unqualified Total Qualified Unqualified Total Qualified Unqualified Total Amount Share IoCs Received To Date Australia % Austria % Belgium % Canada % Czech Republic % Denmark % Finland % France , , , % Germany , , , % Greece % Iceland % Ireland % Italy % Japan % Luxembourg % Netherlands % New Zealand % Norway % Poland % Portugal % Russian Fed % Slovak Republic % Slovenia % South Africa % Spain % Sweden % United Kingdom , , , % United States , , , % Sub-total , , , , , , % IoCs Not Yet Received Hungary % Korea, Rep. of % Kuwait % Saudi Arabia % Singapore % Switzerland % Sub-total % Total Pledges , , , , , , % Financing gap 6.5 1, , , % Total MDRI Costs of IDA , , , % * Based on original MDRI cost estimates Note: Totals may not add up due to rounding.

26 Donor Pledges to the MDRI* (National Currency millions) Table 8b Remaining IDA14 Period Remainder of First Decade Subsequent 3 Decades Grand Total Donors (FY07-08) (FY09-16) (FY17-44) (FY07-44) Curr. Qualified Unqualified Total Qualified Unqualified Total Qualified Unqualified Total Amount Share IoCs Received To Date Australia AUD % Austria SDR % Belgium EUR % Canada CAD % Czech Republic CZK % Denmark DKK , , , % Finland EUR % France EUR , , , % Germany SDR , , , % Greece EUR % Iceland ISK % Ireland EUR % Italy EUR , % Japan JPY - 11, , , % Luxembourg EUR % Netherlands EUR % New Zealand NZD % Norway NOK % Poland PLN % Portugal EUR % Russian Fed. SDR % Slovak Republic SKK % Slovenia EUR % South Africa ZAR % Spain EUR % Sweden SEK , , , , , % United Kingdom GBP , , , % United States USD , , , , , % IoCs Not Yet Received Hungary HUF % Korea, Rep. of KRW - 8, , , , , , , % Kuwait KWD % Saudi Arabia USD % Singapore SGD % Switzerland CHF % * Based on original MDRI cost estimates