Debt Sustainability Framework for Low Income Countries (LIC DSFx)

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Canonical URL: Debt Sustainability Framework for Low Income Countries (LIC DSFx)

Target audience:
- All government officials are welcome to register.
- Particularly useful for officials from ministries of finance, debt agencies, central banks, and other government agencies responsible for providing advice or implementing macroeconomic and debt policies.
Qualifications and technical requirements:
- Some knowledge of economics would be helpful.
- Basic Microsoft Excel skills and access to a computer with a reliable internet connection and a Google Chrome web browser are essential.

Presented jointly by the Institute for Capacity Development and the Strategy, Policy, and Review Department, in collaboration with the World Bank.
Purpose:
- Provides an overview of the World Bank–IMF Debt Sustainability Framework for Low Income Countries (LIC DSF).
Structure and content overview:
- One-module online course that walks through the steps of applying the LIC DSF.
- Identifies data requirements and the “realism tools” used for assessing the plausibility of macroeconomic projections.
- Addresses how the LIC DSF computes a country’s debt-carrying capacity, which is used for determining thresholds for debt-burden indicators.
- Explains 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.
Objective of participant outcomes:
- Enable interpretation of LIC DSF outputs presented in World Bank and IMF reports.

Identify data requirements for the use of the LIC DSF template.
Identify the steps in the production of debt 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.