IMF Executive Board Agrees on Implementation Modalities

On November 7, 2005 the Executive Board of the IMF reached consensus on the implementation modalities in the Fund of the proposal for debt relief initially advanced by the G-8, and decided to call it the Multilateral Debt Relief Initiative (MDRI). The MDRI will provide debt relief to member countries with an annual per capita income at or below $380, and to Heavily Indebted Poor Countries (HIPCs) above that threshold, with respect to the stock of their debt to the Fund (including to the Fund as Trustee) disbursed as of end-2004 that remains outstanding when the country qualifies for debt relief. The Board approved the requisite decisions to implement the MDRI on November 23, 2005. The delivery of MDRI relief now hinges on the consent of the 43 members that have made contributions to the Subsidy Account of the Poverty Reduction and Growth Facility (PRGF) Trust, whose consents are needed to make the MDRI operational, and on separate Board decisions confirming the qualification of eligible members following the country's request to benefit from the Initiative.

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