The Debt Sustainability Framework for Low-Income Countries

Author/Editor: Bergljot Barkbu ; Marie-Helene Le Manchec ; Christian H. Beddies
Publication Date: February 25, 2009
Electronic Access: Link to Abstract

Summary: Low-income countries continue to face significant challenges in meeting their vast development needs while maintaining a sustainable debt position, even after many of these countries have benefited from substantial debt relief. These challenges are further exacerbated by changes in the financial landscape, including the emergence of new creditors and investors, the use of more complex financing vehicles, and the development of domestic markets. The joint World Bank/IMF debt sustainability framework is well placed to help address these challenges and reduce the risks of renewed episodes of debt distress. This paper explains the analytical underpinnings of the framework and the means to ensure its full effectiveness.
Series: Occasional Paper No. 266
Subject(s): Borrowing | Debt strategy | Debt sustainability analysis | External debt | External financing | Low-income developing countries | Multilateral debt relief initiative | HIPC Initiative | Risk management

Publication Date: February 25, 2009
ISBN/ISSN: 9781589067929/0251-6365 Format: Paper
Stock No: S266EA Pages: 47
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