JCTR Policy Brief: First Quarter 2006

This Policy Brief builds on the earlier one issued by the JCTR in 2004 which explored in great detail Zambia’s Experience with the HIPC Initiative. This current Policy Briefs an attempt to offer an explanation on Zambia’s new status after the Completion Point.“We reached the heavily indebted poor countries (HIPC) Completion Point in April 2005 and so what?” asked a workshop participant in one of the Jubilee-Zambia Provincial Workshops. Indeed many other Zambians are asking similar questions given the high expectations that had been created by senior Government officials on the possible benefits to Zambia of reaching the Completion Point. The questions are many and need candid answers from all of us but particularly from Government. For instance, what does the HIPC Completion Point really mean for a Zambian man, woman and child? What are the current debt levels after the Completion Point? What are the specific timelines for the delivery of debt relief to Zambia by the International Monetary Fund (IMF), the World Bank and the other creditors? Is debt relief part of direct budget support? Is there conditionality attached to the HIPC and the G8 debt relief packages? How can Zambia avoid another debt trap in future