The World Bank and the International Monetary Fund the two main multilateral bodies behind the Heavily Indebted Country's Initiative (HIPC) are afterall not too sure whether the initiative would be the panacea for reducing the debt burden of developing countries.

One of its most recent reports seem to suggest that Eight to 10 countries in the highly indebted poor countries (HIPC) programme could still be in debt by the time they finish the programme.

The new report could dent the confidence of the new administration, which has consistently credited the initiative for the relative macro economy stability chalked in the last couple of years.

Finance Minister Yaw Osafo Marfo had in a surprise move announced that Ghana had opted for the HIPC initiative when he presented the 2001 budget before parliament. The move was received with mixed feelings but has generally been accepted now as a legitimate leeway for the government to address the country's myriad of problems.

The HIPC initiative was set up in 1999 by the two bodies and their overlords as an attempt to reduce world's poverty by 2015 and cut $70bn off the $214bn debt burden of the world's poorest nations.

To qualify, countries must adhere to strict IMF criteria on adjustment including the sale of State Owned Enterprises, improved governance and poverty alleviation through the presentation of the Poverty Reduction Strategy Paper (PRSP).

But many countries on the programme have had trouble meeting the performance targets laid out in their poverty reduction plans. In 2001 only one out of an expected five reached the end of the programme otherwise called the completion point.

"The implementation of the initiative in 2002 will continue to face challenges," the bank and fund said in a joint report ahead of the two institutions' annual meetings at the weekend. So far this year seven countries have had interim debt relief halted because of their failure to meet targets.

Weakness in the global economic environment, particularly low commodity prices on which most HIPCs depend, has made it even more difficult for countries to reach the targets set. So far five countries have completed the programme - Uganda, Bolivia, Mozambique, Tanzania and Burkina Faso - but the report says Bolivia and Uganda may need further help.