The New Partnership for Africa’s Development (NEPAD), October 2001

Sectors : Debt relief
Organisation : AU
Date made: 
2001
Level: 
Heads Of State
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Commitments in: Financing for Development - Debt relief

“146. The New Partnership for Africa’s Development seeks the extension of debt relief beyond its current levels (based on debt .sustainability.), which still require debt service payments amounting to a significant portion of the resource gap. The long-term objective of the New Partnership for Africa’s Development is to link debt relief with costed poverty reduction outcomes. In the interim, debt service ceilings should be fixed as a proportion of fiscal revenue, with different ceilings for international development assistance (IDA) and non-IDA countries. To secure the full commitment of concessional resources, debt relief plus ODA, that Africa requires, the leadership of the New Partnership for Africa’s Development will negotiate these arrangements with creditor governments. Countries would engage with existing debt relief mechanisms, the HIPC and the Paris Club, before seeking recourse through the New Partnership for Africa’s Development. The Debt Initiative will require agreed poverty reduction strategies debt strategies and participation in the Economic Governance Initiative to ensure that countries are able to absorb the extra resources. In addition to seeking further debt relief through the interim debt strategy set out above, the leadership of the New Partnership for Africa’s Development will establish a forum in which African countries will share experience and mobilise for the improvement of debt relief strategies.

147. Actions
- The heads of state of the New Partnership for Africa’s Development will secure an agreement, negotiated with the international community, to provide further debt relief for countries participating in the New Partnership for Africa’s Development, based on the principles outlined above;

- The leadership of the New Partnership for Africa’s Development will establish a forum in which African countries may share experiences and mobilise for the improvement of debt relief strategies. They will exchange ideas that may end the process of reform and qualification in the HIPC process.”

Scope: 
Africa