Virtual : DSA and IMF Policies Workshop

Source details

Session No.: CT 21.11 V
Location: Beijing, China
Date: September 13-28, 2021 (2 weeks)
Delivery Method: Virtual Training
Primary Language: English
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 ICBC, 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 other agencies engaged in lending/aid
- Officials in the Ministries of Commerce, Foreign Affairs, and Finance overseeing lending/aid to EMs/LICs

Presented by the IMF's Strategy, Policy, and Review Department.
Objective: Provide a comprehensive overview of tools to assist with debt sustainability analysis, focusing on assessing cases where debt is not sustainable and resolution is needed, and covering the global architecture for debt resolution.
Delivery: Lectures complemented by hands-on exercises using the IMF/WB debt sustainability templates; group work on scenarios and a case study on a debt resolution.

Determination of a country's debt carrying capacity (both external and total debt)
Macro forecasting and 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 and different approaches to restoring 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

Hands-on exercises using the IMF/WB debt sustainability templates.
Group scenario work to consider implications for the evolution of debt vulnerabilities and options to mitigate risks.
A case study on a debt resolution included to apply analytical tools and policy frameworks.