This paper examines the determinants of public debt dynamics in Low Income Countries (LICs) over the period 1990-2003. Debt dynamics in LICs are influenced not only by macroeconomic variables but also by the composition of debt and the provision of debt relief over time. The study considers a...

This paper discusses the Heavily Indebted Poor Countries (HIPC) Initiative in the perspective of sizable historical debt relief and large positive net resource flows to HIPCs. It argues that, by substantially reducing HIPCs' debt stocks and debt service payments, the Initiative provides a solid...