The World Bank and the International Monetary Fund (IMF) launched the Debt Initiative for Heavily Indebted Poor Countries (HIPC) Initiative in 1996 and was further expanded in late 1998(Enhanced HIPC Initiative) , which generated a framework for all creditors, including multilateral creditors, to provide debt relief to the worlds poorest and most heavily indebted countries, and thereby reduce the constraint on economic growth and poverty reduction imposed by the debt build-up in these countries.　　Ghana took the decision to access the Highly Indebted Poor Country (HIPC) Initiative in March 2001.in February 2002, Ghana reached decision point and in July 2004, reached completion point.The total relief from the HIPC Initiative is USD3.7 billion, spread over a 20 year period.This amount represents the relief from Ghanas multilateral, bilateral and commercial creditors.The argument was that HIPC spending will help to improve education and health services delivery, speed up rural electrification, enhance rural agriculture, feeder roads construction and rehabilitation, rural water and sanitation, among others.　　This study was designed to establish whether the HIPC funds that were release for poverty reduction indeed have an impact in the economy and at what rate it did.The research experimental focused on identifying whether the HIPC releases and after the release have an impact in the development of the Ghanas economy.　　The study showed that after the country joined the HIPC initiative, the initiative played an important role in the development of the economy by reducing poverty rate quiet significantly and also growth rate.These findings were interpreted and discussed in the context of literature and a number of implications and recommendations were drawn.