Heavily indebted poor countries that have demonstrated a commitment to poverty reduction are receiving substantial debt relief, and would receive more under the G8 proposal agreed recently.
It is essential that these countries do not build up unsustainable debts again. We have therefore agreed a new arrangement—the Debt Sustainability Framework—to determine whether new assistance should be in the form of loans or grants. We will discuss with partners whether the framework should be adjusted in light of the multilateral relief proposed by the G8.
We are also providing assistance directly to countries to strengthen their debt management capacity.