The International Monetary Fund, also known as the Fund, was established in 1944 due to the Great Depression and in an effort to prevent a similar event. The IMF is normally the last resort for countries in need of emergency financing and therefore offers high interest rates. “This financial assistance allows countries to rebuild their international reserves, stabilize their currencies, continue to pay for their imports and restore the conditions for strong economic growth.” IMF (2018). The IMF is primarily concerned with the stability of exchange rates and the promotion of global financial stability. On the other hand, the World Bank offers much more than just a loan. The World Bank seeks to promote more sustainable growth through loans and educate countries about future development. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essay The World Bank supports “a wide range of investments in areas such as education, health, government public, infrastructure, financial and private sector development" etc.". The main debt relief programs are created with the cooperation of the World Bank and the IMF, including other institutions. The World Bank manages several projects independently in less developed countries Public debt, also known as national debt, is widely known to be disproportionately high among HIPCs (heavily indebted poor countries). owe a debt to the IMF, the World Bank, other countries and private investors. The initiative began in 1996. The main principle of the project was to ensure that less developed economies were “not overwhelmed by a burden. of unmanageable or unsustainable debt. The eligibility criteria for this initiative were strict. According to the World Bank, they helped wipe out “36 participating countries of $99 billion in debt.” The criteria to be considered for the debt relief program as a HIPC are as follows: The country should reach a certain income threshold to be considered. The IMF and World Bank then decide on the amount and intricacies of the payments and the plans to follow. The global community then commits itself to the plan. The second part of the initiative is that countries will receive assistance, once they have committed to a program to reduce poverty in their country. The main objective of the initiative is to promote long-term growth and sustainability. The Multilateral Debt Relief Initiative (MDRI) was introduced in 2005, with its main objective being to clear the debts of some of the poorest countries. In some cases, 100% debt clearance has been proposed. The MDRI is an improved version of previous bilateral and multilateral debt initiatives over the past 20 years. “The aim of the MDRI program is to free up additional resources for the poorest countries to help them achieve the United Nations Millennium Development Goals (MDGs). Weiss, Martin. (2012). The MDG aimed to halve extreme poverty by 2015. “To date, the IMF has provided MDRI debt relief to 21 countries, totaling $3.67 billion.” (A. Weiss, M. 2012) The main reflection that can be asked throughout this essay is whether the WTO and the World Bank are the real winners of these initiatives, and whether the HIPCs will benefit from them. in the long term. The initiative includes strict guidelines that must be implemented by the.