Debt Sustainability Framework for Low Income Countries

Source details

Training Program title: Debt Sustainability Framework for Low Income Countries (LIC DSFx).
Session No.: OL 23.157.
Location: Course conducted online.
Date: May 1, 2023 - April 15, 2024 (50 weeks).
Delivery Method: Online Training.
Primary Language: English.
Presented jointly by the Institute for Capacity Development and the Strategy, Policy, and Review Department, in collaboration with the World Bank.

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.

Provides an overview of the World Bank–IMF Debt Sustainability Framework for Low Income Countries (LIC DSF).
One-module course designed to enable participants to understand and interpret LIC DSF outputs presented in WB and IMF reports.
Course walkthrough (sequence of steps covered):
- Identify data requirements and the “realism tools” used for assessing the plausibility of macroeconomic projections.
- Explain how the LIC DSF computes a country’s debt-carrying capacity, which is used for determining thresholds for the debt-burden indicators.
- Demonstrate how breach of a debt-burden indicator threshold under the baseline or stress test scenarios signals risk of debt distress.
- Explore the use of judgment to arrive at a final risk rating.

Upon completion, 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 WB and IMF reports.