Most countries have some form of debt, although in developed countries the debt is usually primarily an internal debt, i.e. owed to the citizens of that country. Developing countries usually owe a large amount to international banks and to other countries.
Debt servicing payments also limit the availability of money for education and healthcare.
Developing countries have been clamoring for debt forgiveness for several decades but it is only recently that there has arisen a similar cry in the developed world. Over the last few years, debt forgiveness has become a major international issue in which the Pope and celebrities such as Bono of U2 have become spokespeople. The World Bank Group announced the HIPC in 1996 and implemented it in September 1997, aiming debt relief funding at the poorest and most heavily indebted countries. After a number of initial successes in Uganda and Bolivia, the World Bank expanded the initiative and it is now known as the Enhanced Highly Indebted Poor Countries Initiative. The World Bank has also established a Trust Fund for the HIPC to assist multilateral development banks with the costs they incur when forgiving debt.