Enhanced financing may be warranted depending on the intensity of shocks. Progress with the HIPC initiative The HIPC initiative has existed for some time, with the prime motive of alleviating the unsustainable external debt burden of low income countries.
The financing of gross fiscal deficit (GFD) through market borrowings, which constituted small fraction of sources of financing before 1990, increased significantly to 74.9 per cent in 2017-18 (BE) (Chart 1).