Linking debt relief with poverty alleviation

The enhancements of the heavily indebted poor countries (HIPC) Initiative, which were proposed at the Cologne Summit and subsequently endorsed at the IMF/World Bank meeting in September 1999, linked debt relief with poverty alleviation and allowed debtor countries to target budgetary savings to social expenditures. The Cologne Summit called upon all bilateral creditors to forgive all concessional debt owed by qualified HIPC countries. Faster debt relief was provided through earlier cash flow relief (" interim relief") and by allowing an earlier stock reduction.