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This paper presents an assessment of the Central African Republic’s (C.A.R) qualifications for assistance under the Enhanced HIPC Initiative. Stronger policy implementation has helped the economic growth of the C.A.R. under the Poverty Reduction and Growth Facility (PRGF) arrangement. Directors stressed the need for fiscal consolidation supported by policies and implementation of more structural reforms to meet the challenges. A sensitivity analysis of the C.A.R.’s projected external debt burden highlights the need for economic reforms to diversify and enhance export performance and for sustained foreign assistance on favorable terms to avoid the risk of renewed debt distress.

Debt relief -- Central African Republic. --- Economic assistance -- Central African Republic. --- Poverty -- Central African Republic. --- Exports and Imports --- Financial Risk Management --- Debt --- Debt Management --- Sovereign Debt --- International Lending and Debt Problems --- Finance --- International economics --- Debt relief --- Debt service --- Arrears --- Debt service ratios --- Debt reduction --- Asset and liability management --- External debt --- Debts, External --- Central African Republic --- Economic assistance --- Poverty