The IMF Workshop on Debt Sustainability Framework in Low-Income Countries and Fund Policies
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- The IMF Workshop on Debt Sustainability Framework in Low-Income Countries and Fund Policies
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Bibliographic details
- Session: CT 19.01
- Location: Dalian, China
- Dates: February 25, 2019 - March 6, 2019 (2 weeks)
- Primary language: English
Logistics and Course Identifiers
- Session No.: CT 19.01
- Location: Dalian, China
- Date: February 25, 2019 - March 6, 2019 (2 weeks)
- Primary Language: English
Qualifications and Target Audience
- Qualifications
- Participants should have a degree in economics or finance.
- Experience with debt sustainability analysis, or credit risk analysis would be extremely useful.
- Target Audience
- Officials in Eximbank or CDB directly involved in lending decisions (loan officers, credit risk analysts).
- Officials in the PBoC engaged in designing swap arrangements in EMs/LICs.
- Officials from NDRC, China Export and Credit Insurance Corp, CIDCA, and related agencies engaged in lending/aid.
- Officials in the Ministries of Commerce, Foreign Affairs, and Finance overseeing lending/aid to EMs/LICs.
- Officials from borrowing countries responsible for macroeconomic and fiscal/budget projections.
Course Description and Educational Objectives
- Purpose
- Presents a comprehensive overview of the tools available to assist with debt sustainability analysis, with a special focus on how to use them to assess cases where it is proposed that investment be scaled up.
- Covers the global architecture for debt resolution, when this is necessary.
- Teaching methods
- Lectures complemented by hands-on exercises using the IMF/WB debt sustainability templates.
- Group work to consider scenarios and their implications for the evolution of debt vulnerabilities, and options to mitigate risks.
Topics Covered (enumerated)
- Determination of a country's debt carrying capacity (both external and total debt).
- Checking forecasts for realism (with close attention to investment-growth linkages).
- Assessing contingent risks that exist due to gaps in data on total public debt.
- Examining risks posed by shocks (natural disasters, commodity prices, market exposures).
- Bringing in other factors that could influence debt outcomes (assets, private debt, etc).
- Categorizing risks for external and total debt, and qualifying them.
- Thinking about fiscal space for borrowing.
- The IMF's Debt limits policy and international agreements on structuring lending.
- How different approaches to financing investment could impact assessments.
- Thinking about sustainability.
- The process of private debt resolution.
- The process for resolution of official debt at the Paris Club.
- Creditor type and hierarchy.
- Typical solutions deployed by negotiators in restructuring situations.
- The IMF's policies when dealing with countries in a debt resolution situation, including:
- the lending framework for exceptional access,
- the financing assurance policy,
- the lending into arrears policy.
References