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IDB shareholders vote to approve framework for debt relief to poorest countries under HIPC initiative

SANTIAGO, Chile - Shareholders of the Inter-American Development Bank have voted to approve the financial framework that would enable the Bank to provide debt relief to Bolivia, Guyana, Honduras and Nicaragua under the international initiative to ease the burden on the world’s most heavily indebted poor countries (HIPC).

The announcement was made to the Committee of the IDB Board of Governors, which met Sunday in Santiago prior to the opening plenary session of the Annual Meeting of the Board of Governors.

The financing framework puts in place the remaining resources needed for the IDB to meet its full obligation of $1.1 billion in net present value under the enhanced HIPC initiative.

The IDB is expected to receive $168 million from donors through the HIPC Trust Fund as well as contributions totaling $150 million from countries in Latin America and the Caribbean that have agreed to the conversion of resources from the IDB’s Fund for Special Operations that they would otherwise have been able to use.

The financing framework also provides for substantial donor support through the HIPC Trust Fund to five subregional creditors of the HIPC countries in Latin America and the Caribbean.

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