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Overview

In this paper, a series of agencies propose that the World Bank and IMF and their shareholders radically overhaul the way in which debt relief is calculated and provided. The over-arching objective of debt relief must be to help mobilise the finances needed to achieve the MDGs. If HIPC countries are to meet these targets the principle of a 100% debt cancellation option needs to be agreed. Similarly, a broad set of economic and human development objectives must be applied when deciding what level of debt repayments a country can afford to make.

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