External Debt Sustainability in HIPC Completion Point Countries : An Update

Author/Editor:

Jie Yang ; Dan Nyberg

Publication Date:

June 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Despite substantial debt relief to HIPC Initiative completion point countries, long-term debt sustainability remains a challenge. This paper examines a number of structural factors affecting external debt sustainability. It shows that in HIPC completion point countries (i) the export base broadly remains narrow; (ii) fiscal revenue mobilization lags behind in some countries; and (iii) policy and institutional frameworks are still relatively weak. Achieving and maintaining longterm debt sustainability in completion point countries will require continued structural reforms, timely donor support, and close monitoring of new non-concessional borrowing.

Series:

Working Paper No. 09/128

Subject:

English

Publication Date:

June 1, 2009

ISBN/ISSN:

9781451872750/1018-5941

Stock No:

WPIEA2009128

Format:

Paper

Pages:

20

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