Debt Management Capacity Building Programme for HIPC's
Under the HIPC Initiatives, each HIPC has to engage in analysis with the Bretton Woods Institutions on the sustainability of its external debt. To qualify for relief, each HIPC also needs to demonstrate that it has a coherent strategy aiming to achieve long-term sustainability of its debt, and since 2005 its composition of external financing will be determined in considerable part by a long-term debt sustainability analysis.
In that context, the Governments of Austria, Canada, Denmark, Ireland, Sweden, Switzerland and the United Kingdom have been funding a HIPC Debt Strategy and Analysis Capacity-Building Programme (CBP). Its goal is for HIPC governments to improve their debt strategy formulation and implementation, contributing to poverty reduction through enhanced macroeconomic management. The objectives of the programme are: (i) to allow Heavily - lndebted Poor Country (HIPC) Governments to develop the full independent capacity to design and execute their own national debt strategies and (ii) to maintain a high level of overall debt management, during and beyond the HIPC initiative.
The programme has so far consisted of three phases since 1997, with funding for each approved by donors following positive independent reviews and based on strong demand for assistance from HIPCs. An evaluation of phase 3 has concluded that donors should fund a final phase.