2007年-IMF国际货币组织全球_Proposals_to_Modify_the_PRGF_14页_243kb

Summary of the Proposal to Modify the PRGF-HIPC Trust Instrument

I. Introduction

This document outlines proposals to modify the PRGF-HIPC Trust Instrument to address the issue of how countries like Liberia can be given credit for their strong policy performance in macroeconomic stabilization and structural reform, even when the Fund and other international financial institutions lack sufficient financing assurances for arrears clearance and debt relief.

The modifications aim to facilitate the normalization of Liberia's financial relations with the Fund and its access to debt relief, while minimizing changes to the enhanced HIPC Initiative and MDRI frameworks. The paper builds on a July 2007 proposal and addresses key policy issues raised by Executive Directors.

II. Background and Suggested Policy Changes

The Fund's debt relief under the enhanced HIPC Initiative is based on a set of rules that require countries to meet certain criteria to qualify for assistance. These include:

• Being PRGF-ESF-eligible and eligible for full debt relief under traditional mechanisms.
• Having end-2004 debt above the HIPC threshold even after applying traditional mechanisms.
• Adopting a qualifying Fund-supported program.

To reach the decision point, a country must also:

• Have a satisfactory poverty reduction strategy.
• Establish a track record of strong policy performance under Fund-supported programs.
• Fulfill program financing assurances, including clearing arrears to the Fund and other creditors.

The Fund requires creditors' participation assurances, which are commitments from creditors to provide their share of debt relief. These assurances are typically required at 70% for interim assistance and 80% for reaching the completion point.

The issue of financing assurances has delayed access to debt relief for countries like Liberia, despite their strong policy performance. The proposed amendment seeks to address this by allowing performance under Staff-Monitored Programs (SMPs) to count toward the track record for reaching the decision point, provided they meet the Upper Credit Tranche (UCT) quality standards.

III. Policy Issues and Suggested Implementation Modalities

A. Criteria for Determining SMPs of UCT Quality

• The Board would assess whether the macroeconomic and structural policies under an SMP are of UCT quality.
• This assessment would focus on the strength of the policies, not on financing assurances.
• Qualifying SMPs would not require full program financing or HIPC financing assurances to count toward the track record.

B. Program Financing Issues

• Members not eligible for a RAP would need to have no arrears to the Fund and an agreed financing plan with the World Bank.
• RAP-eligible members would not be required to clear existing arrears to the Fund during a qualifying SMP.
• However, they would be expected to remain current on new obligations.
• In cases of severely limited payment capacity, RAP-eligible members could accumulate new arrears to the Fund during the SMP period.

C. The Role of the Executive Board

• The Executive Board would retain its role in assessing whether the member's policy performance justifies reaching the decision point.
• The Board would determine whether the policies under the SMP are of UCT quality and whether the member has demonstrated satisfactory implementation over a minimum period of six months.
• The Board would use similar modalities and practices as those used for Fund-supported programs to evaluate performance.

D. Uniformity of Treatment

• The proposed amendment would apply uniformly to all pre-decision-point HIPCs that meet the criteria.
• This includes countries like Liberia, Somalia, and Sudan, which are currently in arrears with multilateral creditors.
• The amendment would allow SMPs of UCT quality to be used as a track record for reaching the decision point.

IV. Other Policy Considerations

A. Satisfactory "Creditors' Participation" Assurances

• No changes are proposed to the minimum threshold for creditors' participation in the HIPC Initiative.
• The Fund will continue to require that creditors holding at least 70% of HIPC-eligible debt provide their share of relief.
• Liberia currently has a 3.3% share of HIPC-eligible debt with non-Paris Club creditors and 18.2% with commercial creditors.

V. Conclusion

The proposed amendments to the PRGF-HIPC Trust Instrument aim to streamline the process of accessing debt relief for countries with protracted arrears, such as Liberia. By allowing SMPs of UCT quality to count toward the track record, the Fund can better support countries that have implemented strong policy reforms but lack the necessary financing assurances. These changes would apply to all pre-decision-point HIPCs and require a majority decision by the Fund's Executive Board. The modifications are intended to preserve the integrity and standards of the HIPC Initiative while providing more flexibility for countries in need of debt relief.