debt cancellation. Non-HIPC countries are assessed on a case-by-case basis. Non-HIPC countries seeking debt relief first undergo an IMF debt sustainability analysis. This analysis determines whether the country suffers from a liquidity problem, a debt sustainability problem, or both. If the IMF determines that the country suffers from a temporary liquidity problem, its debts are rescheduled until a later date. If the country is also determined to suffer from debt sustainability problems, where it lacks the long-term resources to meet its debt obligations and the amount of debt adversely affects its future ability to pay, the country is eligible for debt cancellation. Policies for heavily indebted poor countries The great difficulties of some developing countries to break the cycle of debt led creditor countries of the Paris Club to adopt more ambitious policies. In October 1988, creditors decided to implement a new treatment for the debt of the poorest countries. This new treatment called " Toronto terms " implements for the first time a reduction of the stock of debt of poor countries. The level of reduction was defined as 33.33%. Twenty countries benefited from Toronto terms between 1988 and 1991. In December 1991, creditors decided to increase the level of cancellation of 33.33% as defined in Toronto, to 50% under the "London terms". These agreements benefited to 23 countries. Going even further, in December 1994, creditors decided to implement a new treatment called "Naples terms", which can be implemented on a case by case basis. Thus, for the poorest and most indebted countries, the level of cancellation of eligible credit is increased to 50% or even 67% (as of September 1999, all treatments carry a 67% debt reduction). In addition, stock of treatments can be applied in each case for countries that have complied satisfactorily with previous commitments. Up to 2008, 35 of 39 countries have reached the completion point of the Heavily Indebted Poor Countries HIPCs. Finally, in September 1996, the joint proposal of the Development Committee of the World Bank and the IMF Interim Committee, the international financial community has recognized that the debt situation of a number of very poor countries, of which three quarters are located in sub-Saharan Africa remained extremely difficult, even after having used traditional mechanisms. A group of 39 countries were identified as being potentially eligible for the Heavily Indebted Poor Countries HIPCs. Since the start of the HIPC initiative, debt relief