Heavily Indebted Poor Countries Initiative (HIPC)

The Heavily Indebted Poor Countries (HIPC) Initiative is a global program launched by international financial institutions to help the world's poorest countries reduce their external debt to sustainable levels. These countries often face significant economic challenges because they owe large sums of money to creditors, which hampers their ability to invest in essential services like healthcare, education, and infrastructure. The HIPC provides debt relief and financial support, enabling these nations to focus on development and poverty reduction. It aims to promote economic stability and growth by easing the debt burden while encouraging responsible borrowing and spending.