Review of The Debt Sustainability Framework For Market Access Countries

February 3, 2021

Preview Citation

Format: Chicago

Review of The Debt Sustainability Framework For Market Access Countries, (USA: International Monetary Fund, 2021) accessed November 8, 2024

Summary

A careful review has revealed significant scope to modernize and better align the MAC DSA with its objectives and the IMF’s lending framework. This note proposes replacing the current framework with a new methodology based on risk assessments at three different horizons. Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one. In addition to predicting sovereign stress, the framework can be used to derive statements about debt stabilization under current policies and about debt sustainability.

Subject: Asset and liability management, Debt refinancing, Debt sustainability, Debt sustainability analysis, External debt, Fiscal policy, Fiscal stance, Monetary policy, Political economy, Public debt

Keywords: Debt refinancing, Debt sustainability, Debt sustainability analysis, Definition of stress event, Fiscal stance, Global, I. backtesting result, IMF team, Resource requirement, Sustainability assessment

Publication Details

Pages:

124
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2021/003
Stock No:

PPEA2021003
ISBN:

9781513568324
ISSN:

2663-3493

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