Publication

This paper illustrates that the Multilateral Debt Relief Initiative (MDRI) is the latest phase of debt reduction for poor countries from the World Bank, the IMF and the African Development Bank. However, the author suggests that the actual gains may be more modest and elusive because there is a limited short-term financial impact of the MDRI on affected countries due to debt service obligations. The author explains that the impact could be considerable over the long-term, especially on the ability of creditors to be more selective in the future.