Debt Relief Quiz

What is an example of a top-down policy to help close the development gap?

• Microfinance

• Debt relief

• Community development

• Local entrepreneurship

Which organization agreed on a debt relief policy with Uganda?

• International Monetary Fund

• United Nations

• African Union

• World Bank

What initiative was launched by the IMF and World Bank in 1996?

• HIPC Initiative

• Millennium Development Goals

• Global Debt Initiative

• Sustainable Development Goals

What does the Multilateral Debt Relief Initiative provide?

• Debt restructuring

• Interest rate reduction

• Partial debt relief

• 100 percent relief on eligible debts

How much more are eligible countries spending on health and education since the HIPC Initiative?

• The same amount

• Five times more

• Three times more

• Twice as much

By how much did debt service paid decline for the 36 countries receiving debt relief between 2001 and 2015?

• 1.5 percentage points of GDP

• 0.5 percentage points of GDP

• 3 percentage points of GDP

• 2 percentage points of GDP

What is a problem associated with debt relief?

• Lack of international support

• Increased interest rates

• Holdouts by private creditors

• Excessive government spending

Why do private creditors have little incentive to agree to debt relief?

• They receive government subsidies

• They have no financial interest

• They benefit from lower interest rates

• They can pursue legal action for full repayment

What does the debt relief framework lack?

• Financial incentives for creditors

• Support from international organizations

• Public awareness campaigns

• Clear rules for uniform debt relief

Which organization provided additional debt relief to the five HIPCs in the Western Hemisphere in 2007?

• United Nations Development Programme

• European Union

• World Health Organization

• Inter-American Development Bank