Issues around debt are complex and country-specific, and the IMF is taking a careful and deliberate approach to help member countries address them. The IMF’s work to support its members in ensuring debt sustainability and addressing sovereign debt challenges takes the following, mutually reinforcing and partly overlapping, forms:
Analysis to identify debt vulnerabilities covers both global or regional debt trends and country-specific assessments, so-called Debt Sustainability Analyses (DSAs). This analysis serves the purpose of identifying debt risks and providing advice on how to address them as early as possible.
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Analytical papers on debt trends |
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The Evolution of Public Debt Vulnerabilities in Lower Income Economies▸ Macroeconomic Developments and Prospects in Low-Income Developing Countries—2019▸ |
Debt crisis prevention through a multi-pronged approach incl. fostering debt transparency and better public sector debt data; supporting members’ capacity development in adopting prudent public debt management framework incl. the formulation of a medium-term debt management strategy; developing the local currency bond market; and exploring other ways, incl. the adaptation of the IMF’s own analytical tools and policies, to mitigate debt risks.
Update on the Joint IMF-WB Multipronged Approach to Address Debt Vulnerabilities▸
| Working with Creditors on Sustainable Financing |
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G20 Operational Guidelines for Sustainable FinancingꟷDiagnostic Tool▸ Survey: G20 Operational Guidelines for Sustainable FinancingꟷDiagnostic Tool▸ |
| Local Currency Bond Market Development |
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Joint IMF-World Bank Guidance Note for Developing Local Currency Bond Markets▸ |
| Public Debt Management |
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Revised Guidelines for Public Debt Management▸ Strengthening Debt Management Practices – Lessons from Country Experiences and Issues Going Forward▸ |
| Medium-term Debt Management Strategy |
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Medium-term Debt Management Strategy – An Assessment of Recent Capacity Building▸ |
Debt crisis resolution can be achieved through a combination of policy adjustment and measures to restore growth. But in some cases, adjusting policies is not enough to address the debt problem, and a debt restructuring is necessary. In such cases, an IMF-supported program can complement the debt restructuring by the member country, with macroeconomic policies and fresh financing to enable a return to medium-term viability. More broadly, the IMF is also lending its support to improving the international architecture for sovereign debt restructurings, which is critical to enable faster and more effective debt reduction.
Reform of the International Debt Architecture is Urgently Needed▸
| Private Sector Involvement |
| Arrears Policies |
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Reviews of the Fund's Sovereign Arrears Policies and Perimeter▸ Reforming the Fund's Policy on Non-Toleration of Arrears to Official Creditors▸ |
