Debt Sustainability Framework for Low Income Countries (LIC DSFx)

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Canonical URL: Debt Sustainability Framework for Low Income Countries (LIC DSFx)

Session No.: OL 26.122
Location: Course conducted online
Date: May 1, 2026 - April 15, 2027 (50 weeks)
Delivery Method: Online Training
Primary Language: Portuguese
Target audience: 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 would be helpful. Basic Microsoft Excel skills are essential.

Provides an overview of the World Bank-IMF Debt Sustainability Framework for Low Income Countries (LIC DSF).
Explains purpose: help low-income countries achieve development goals while minimizing the risk of debt distress.
Teaches interpretation of LIC DSF outputs presented in WB and IMF reports.
Covers the step-by-step application of the LIC DSF:
- Identify data requirements and the "realism tools" used for assessing the plausibility of macroeconomic projections.
- Show how the LIC DSF computes a country's debt-carrying capacity for determining thresholds for debt-burden indicators.
- Explain that when a debt-burden indicator breaches its threshold under either the baseline or stress test scenarios, this signals risk of debt distress.
- Explore how judgment can be used to arrive at a final risk rating.

Data requirements: identification and assembly of data needed for the LIC DSF template.
Realism tools: methods to assess plausibility of macroeconomic projections.
Debt-carrying capacity: computed by the LIC DSF to determine thresholds for debt-burden indicators.
Stress test scenarios: interpretation of LIC DSF stress test scenarios and how breaches of thresholds under baseline or stress tests signal risk of debt distress.
Judgment: use of expert judgment to arrive at a final debt distress risk rating.

Identify data requirements for the use of the LIC DSF template.
Identify the steps in the production of debt risk ratings for low-income countries.
Analyze the LIC DSF realism tools.
Interpret the LIC DSF stress test scenarios.
Identify how the LIC DSF computes thresholds for debt-burden indicators.
Interpret the outputs of the debt sustainability analysis for low-income countries, as presented in WB and IMF reports.