The HIPC Initiative has been very successful in Ghana. There is however the general recognition that bringing a single debt measure down to a critical threshold at a single point in time is no guarantee against future debt problems (IMF, 2001). As noted in an IMF publication (IMF 2000a), “debt relief under the HIPC Initiative provides a basis, but not a guarantee for long-term debt sustainability in HIPC countries”. While the debt relief granted under the HIPC Initiative will substantially reduce the debt service due on existing debt, maintaining debt sustainability will also crucially depend on future macroeconomic policies, growth performance, and financial assistance from donors.

Ghana reached the enhanced HIPC Initiative decision point on February 2002 and qualified for debt relief under both the fiscal / openness and net present value of external debt-to-exports criteria. It was the former criterion that offered significant debt relief of US$2,186 million or in nominal terms US$3,700 million required to lower the net present value of external debt-to-government budget revenue ratio to 250 per cent.