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Explain the Conditions Under Which the HIPC Initiative Developed and Changed

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Essay

Explain the conditions under which the HIPC initiative developed and changed in response to the debt reduction challenges of the world's poorest countries.Does debt cancellation encourage moral hazard dilemmas by both lenders and governments?


Definitions:

Warranties

Legally binding promises or guarantees about the state or quality of a product or service, provided by the seller.

Presentment

The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Fraud in the Inducement

A deceptive practice intended to mislead someone into entering a contract or agreement by providing false statements or misleading information.

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