Debt cancellation for Burundi

02 February 2009

$1.6 billion debt cancellation for Burundi

Burundi completed the Heavily Indebted Poor Countries (HIPC) Initiative in January 2009. This means Burundi will receive debt cancellation worth approximately US$1.6 billion from the World Bank and creditor countries, reducing its debt by more than 90%.

Debt relief has already made a big difference: Burundi is using the extra $75 million HIPC relief provided in 2006 and 2007 for the reconstruction and revival of social services after over 12 years of internal conflict. For example, this has supported the government's abolition of primary school fees and enabled it to build 1100 primary school classrooms to meet the increased demand.