Bilateral debt refers to outstanding obligations of foreign governments to the U.S. government.
Multilateral debt refers to such obligations owed to institutions such as the World Bank, the International Monetary Fund, The Inter-American Development Bank, the African Development Bank and other regional financial institutions. Requires that priority in granting debt relief be given to countries which have demonstrated sustained commitment to poverty alleviation or have recently suffered a major natural disaster. Requires debt relief for all eligible countries be completed by September 30, 2001. Requires that the savings to a country resulting from debt relief be deposited in a Human Development Fund dedicated to reducing the number of persons living in poverty, expanding access of the poorest to basic social services, and protecting the environment. Requires establishment and monitoring of Fund operations to be transparent and participatory, including participation of civil society.