Debt Sustainability Framework for Low Income Countries

Source details

Some knowledge of economics is helpful.
Basic Microsoft Excel skills are required.
Access to a computer with a reliable internet connection and a Google Chrome web browser is essential.

All government officials are welcome to register.
Particularly useful for officials from:
- ministries of finance,
- debt agencies,
- central banks,
- other government agencies responsible for providing advice or implementing macroeconomic and debt policies.

The course is presented jointly by the Institute for Capacity Development and the Strategy, Policy, and Review Department, in collaboration with the World Bank.
Provides an overview of the World Bank–IMF Debt Sustainability Framework for Low Income Countries (LIC DSF).
One-module online course aimed at enabling participants to understand and interpret LIC DSF outputs presented in World Bank and IMF reports.
Course structure and content:
- Walks through steps involved in applying the LIC DSF.
- Identifies data requirements and the “realism tools” used for assessing the plausibility of macroeconomic projections.
- Explains how the LIC DSF computes a country’s debt-carrying capacity, used to determine thresholds for debt-burden indicators.
- Describes that when a debt-burden indicator breaches its threshold under either the baseline or stress test scenarios, this signals risk of debt distress.
- Concludes by exploring how judgment can be used to arrive at a final risk rating.

Upon completion of the course, participants should be able to:

Identify data requirements for the use of the LIC DSF template.
Identify the steps in the production of risk ratings for low-income countries.
Understand the LIC DSF realism tools.
Interpret the LIC DSF stress test scenarios.
Identify how the LIC DSF computes thresholds for debt-burden indicators.
Understand the LIC DSF risk ratings.
Interpret the outputs of the debt sustainability analysis for low income countries, as presented in World Bank and IMF reports.