Debt Sustainability Analysis -- Low-Income Countries

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Low-income countries (LICs) face significant challenges in meeting their development objectives, including the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs), while ensuring that their external debt remains sustainable.
In April 2005, the Executive Boards of the Fund and the Bank endorsed a joint framework for debt sustainability assessments (DSAs) in low-income countries.
The aim of the Debt Sustainability Framework (DSF) is to guide borrowing decisions of low-income countries in a way that matches their need for funds with their current and prospective ability to service debt, tailored to their specific circumstances.

Guide borrowing decisions of low-income countries to align financing needs with debt-servicing capacity.
Tailor debt assessments and policy advice to country-specific circumstances.
Support LICs in pursuing development objectives while maintaining external debt sustainability.

The Executive Boards of the Fund and the Bank endorsed the joint framework in April 2005.
The DSF operates as a joint Bank-Fund framework for conducting Debt Sustainability Analyses (DSAs) in LICs.

The term "country" as used in the context of the DSF does not in all cases refer to a territorial entity that is a state as understood by international law and practice; it also covers some territorial entities that are not states.
Dependent territories of member countries are listed alphabetically followed by a description of the constitutional relationships with their member countries.

For more information on debt-related issues in low-income countries (LICs) e-mail:Lending to LICs