74653 Union of Comoros Enhanced Highly Indebted Poor Countries (HIPC) Initiative Completion Point and Multilateral Debt Relief Initiative (MDRI) CHAIR’S SUMMING UP Meeting of the Executive Directors December 20, 2012 Executive Directors discussed the President's Memorandum and Recommendation and Completion Point Document for the Enhanced Heavily-Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI) for the Union of Comoros. Directors agreed that Comoros has reached Completion Point under the Enhanced HIPC Initiative and endorsed the recommendations contained in paragraphs 15-17 of the Memorandum of the President. Executive Directors commended the government's progress on reaching the Floating Triggers toward HIPC Completion Point. They agreed with the request for a waiver of one of the 16 Floating Completion Point Triggers. Directors acknowledged the progress made with regard to fiscal policy in 2012 and stressed the need to sustain fiscal effort as well as to continue the momentum of reform through consistent and deepened engagement by the Bank and other partners beyond the HIPC Completion Point. Speakers underscored that despite the HIPC and MDRI debt reduction, Comoros would remain at high risk of debt distress and cautioned the authorities to solicit aid mainly in the form of grants and maintain a highly prudent borrowing policy, seeking strictly concessional loans. In this context, Directors noted that continued reform in the areas of state-owned enterprises, public financial management, and public sector performance was critical to improve overall governance and foster stronger growth and poverty reduction. Executive Directors also urged the Bank for greater technical assistance to strengthen statistical capacity for improving poverty reduction outcomes. Directors acknowledged the country's limited institutional capacity and underscored the importance of stronger collaboration among donors, as well as with multilateral and bilateral partners, for economic and social development that would help Comoros emerge from fragility.  This summary is not an approved record.