Debt Sustainability Framework for Low Income Countries

Source details

Session No.: OL 24.141
Location: Course conducted online
Date: May 1, 2024 - April 15, 2025 (50 weeks)
Delivery Method: Online Training
Primary Language: English
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:
- Some knowledge of economics is 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.
Provides an overview of the World Bank-IMF Debt Sustainability Framework for Low Income Countries (LIC DSF).
Purpose of the LIC DSF:
- To help low-income countries achieve their development goals while minimizing the risk of debt distress.
Structure and topics covered:
- One-module online course that walks through the steps involved in applying the LIC DSF.
- Identification of data requirements and the "realism tools" used for assessing the plausibility of macroeconomic projections.
- Explanation of how the LIC DSF computes a country's debt-carrying capacity, which is used to determine thresholds for debt-burden indicators.
- Treatment of baseline and stress test scenarios: when a debt-burden indicator breaches its threshold under either the baseline or stress test scenarios, this signals risk of debt distress.
- Discussion of how judgment can be used to arrive at a final risk rating.
Intended outcome:
- Enable participants to interpret 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 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.