Naples Terms

Naples Terms

A form of debt relief for heavily indebted poor countries in which the present value of payments is reduced by up to two-thirds. The Naples terms were introduced by the Paris Club in 1995. This form of debt relief is a type of concessional restructuring.
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Contents Introduction Background Paris Club Terms Classic Terms Houston Terms Naples Terms Cologne Terms The Evian Approach U.
They are, in increasing degree of concessionality: Classic Terms, the standard terms available to any country eligible for Paris Club relief; Houston Terms, for highly-indebted lower to middle-income countries; Naples Terms, for highly-indebted poor countries; and Cologne Terms, for countries eligible for the IMF and World Bank's Highly Indebted Poor Countries Initiative (HIPC).
Countries may receive Naples terms treatment if they are eligible to receive loans from the World Bank's concessional facility, the International Development Agency (IDA).
7) They allow for higher levels of debt cancellation than Naples Terms.