Public Information Notice: IMF Executive Board Discusses Operational Framework for Debt Sustainability Assessments in Low-Income Countries, May 4, 2005

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Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative



Operational Framework for Debt Sustainability Assessments in Low-Income Countries—Further Considerations
Prepared by the Staffs of the IMF and World Bank
March 28, 2005

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Contents


I.  

Introduction

   

II.  

Choice of Indicative Debt-Burden Thresholds

   

III.  

Interaction with the HIPC Initiative

   

IV.  

Modalities for Bank-Fund Collaboration on DSAs

   

V.  

Conclusions

   

VI.  

Issues for Discussion

   

Tables

Table 1.

Low-Income Country Groupings By Quality of Policies and Institutions

Table 2.

Debt-Burden Thresholds Under Alternative Options

Table 3.

Hypothetical Impact of Alternative Thresholds on Total Indebtedness

Table 4.

Comparison of Debt-to-Exports and Debt-to-GDP Ratios With

 

Indicative Thresholds

   

Box

Box 1.

Proposed Low-Income Country Debt Distress Classification


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