Publication: Cameroon - Debt Relief Grant under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative
Date
2008-02
ISSN
Published
2008-02
Author(s)
Mastri, Lawrence
Abstract
The objective of debt relief grant
operation was to provide Cameroon the assistance required by
IDA under the enhanced HIPC Debt Initiative upon Cameroon
reaching the completion point, thus contributing to
improving Cameroon's overall debt sustainability and
supporting the government's implementation of its
poverty reduction strategy through increased spending from
the fiscal savings. The policy areas supported by the
program are those linked to the conditions for reaching the
completion point under the enhanced HIPC debt initiative,
namely: (i) preparation of a poverty reduction strategy
paper (PRSP), and satisfactory implementation for at least
one year; (ii) the maintenance of a stable macroeconomic
framework and continued satisfactory performance under the
IMF's Poverty Reduction and Growth Facility (PRGF)
program; (iii) use of budgetary savings from the interim
debt service relief; (iv) the satisfactorily implementation
of the structural reforms supported by the Third Structural
Adjustment Credit (SAC III) financed by IDA; (v)
implementation of governance and anti-corruption measures in
the areas of judicial reform, budget execution, procurement
reform, and the creation of regulatory agencies; and (vi)
implementation of key social reforms, including combating
malaria and HIV/AIDS. Some of the lessons are as follows:
(i) formulate a realistic timeframe for the government to
meet the triggers of the completion point; and (ii) ensure
that the government puts in place a strong focal point/unit
to coordinate and monitor the implementation of the
completion point triggers and facilitate related post
completion point actions.
Citation
“Mastri, Lawrence. 2008. Cameroon - Debt Relief Grant under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative. Africa Region Findings & Good Practice Infobriefs; No. 145. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/4c687dfc-1ef2-51c1-8be2-5eddf5d71b56 License: CC BY 3.0 IGO.”