Individuals, organizations and societies all rely on debts for their functioning. Their large and expensive projects cannot be carried out without taking help and support from other social and financial organizations. Sometimes individuals, organizations and societies fail to repay these debts. The fractional or total forgiveness of debt by donor institutions is known as Debt relief. Sometimes these organizations may also slow repayment of debt or completely stop the size of growing debt that is due on individuals, organizations, societies, corporations and nations. The word debt relief concerns mainly with the debt owed by the Third World nations which is more commonly known as the third world debt. The explosion of this debt began in Mexico in the year 1982 and was more commonly known as the Latin American debt crisis. A campaign was started in the year 1990 by an association of NGOs to stand in support of offering debt relief to countries who were heavily indebted. Mostly the underdeveloped and developing nations throughout the world have been supported by this initiative. This initiative carried out under the name Jubilee 2000 carried out demonstrations in Birmingham at the G8 summit of 1998. This made international organizations like International Monetary Fund (IMF) and World Bank aware about the significance and need of debt relief offered to the poor nations. Finally an initiative called the Heavily Indebted Poor Countries (HIPC) was initiated. This helped in providing efficient and methodical debt relief to poor countries. At the same time it was ensured that this money would be used up to reduce poverty of these countries. But this HIPC programme has several conditional ties attached to it. These conditions are similar to the conditions attached with loans and funds obtained from IMF and the World Bank. These include reforms related to structural adjustments, privatization of community utilities such as electricity and water. Those underdeveloped and developing countries that need to have the debt relief needed to sustain a standard level of macroeconomic stability. They were also asked to implement a strategy for poverty reduction to the satisfaction of these organizations at least for one year. They were also asked to reduce the rate of inflation and in doing so they reduced the amount of money spent on sectors like education and health.