{
  "title": "Reform of the Policy on Public Debt Limits in Fund-Supported Programs",
  "publication": "Policy Papers, November 14, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/reform-of-the-policy-on-public-debt-limits-in-fund-supported-programs-pp4926",
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  "summary": "The reform of the Fund’s policy on the use of conditionality on public external debt in Fund-supported programs (the “debt limits policy”) has been under discussion since March 2013.",
  "sections": [
    {
      "heading": "Overview and Rationale",
      "content": "- The reform addresses the Fund’s policy on the use of conditionality on public external debt in Fund-supported programs (the “debt limits policy”).\n- Discussion of the reform has been ongoing since March 2013.\n- Motivation: lower income countries seek higher public investment to close large infrastructure gaps while facing a wider range of external financing opportunities and limits on the supply of traditional concessional financing.\n- The 2009 reform of the Fund’s policy on debt conditionality was a first step; experience with the 2009 reforms pointed to the need for more fundamental reforms to provide countries greater flexibility to finance productive investments while containing risks to medium-term debt sustainability."
    },
    {
      "heading": "Reform Process and Consultations",
      "content": "- The proposed reforms build on:\n  - Board review of the debt limits policy in March 2013,\n  - Informal Board discussions in January and May 2014,\n  - An informal seminar in September 2014,\n  - Various stakeholder consultations.\n- Staff’s development approach:\n  - First specify a robust set of principles to guide the use of public debt conditionality in all Fund arrangements.\n  - Then examine how these principles should apply in the specific circumstances of countries that normally rely on official external concessional financing."
    },
    {
      "heading": "Objectives and Scope",
      "content": "- Primary objective: provide countries with greater flexibility to finance productive investments while containing risks to medium-term debt sustainability.\n- Scope includes application of principles across all Fund arrangements and particular attention to low-income countries that rely on concessional external financing."
    },
    {
      "heading": "Publication Details and Subjects",
      "content": "- Publication date: November 14, 2014\n- Subjects: Concessional aid, Conditionality, External debt, Fund policies, Fund-supported adjustment programs, Low-income developing countries, Public debt\n- Availability note: Also Available in French\n\nInternational Monetary Fund — Reform of the Policy on Public Debt Limits in Fund-Supported Programs (November 14, 2014).\n\n---\n\n Content in this bundle\n\n- Reform of the Policy on Public Debt Limits in Fund-Supported Programs; December 19, 2014\n  - Reform of the Policy on Public Debt Limits in Fund-Supported Programs; December 19, 2014 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Reform of the Policy on Public Debt Limits in Fund-Supported Programs; December 19, 2014 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/reform-of-the-policy-on-public-debt-limits-in-fund-supported-programs-pp4926"
    }
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    "Published: November 14, 2014",
    "Series: Policy Papers",
    "The reform addresses the Fund’s policy on the use of conditionality on public external debt in Fund-supported programs (the “debt limits policy”).",
    "Discussion of the reform has been ongoing since March 2013.",
    "Motivation: lower income countries seek higher public investment to close large infrastructure gaps while facing a wider range of external financing opportunities and limits on the supply of traditional concessional financing.",
    "The 2009 reform of the Fund’s policy on debt conditionality was a first step; experience with the 2009 reforms pointed to the need for more fundamental reforms to provide countries greater flexibility to finance productive investments while containing risks to medium-term debt sustainability.",
    "The proposed reforms build on:",
    "Staff’s development approach:",
    "Primary objective: provide countries with greater flexibility to finance productive investments while containing risks to medium-term debt sustainability.",
    "Scope includes application of principles across all Fund arrangements and particular attention to low-income countries that rely on concessional external financing.",
    "Publication date: November 14, 2014",
    "Subjects: Concessional aid, Conditionality, External debt, Fund policies, Fund-supported adjustment programs, Low-income developing countries, Public debt",
    "Availability note: Also Available in French",
    "**Reform of the Policy on Public Debt Limits in Fund-Supported Programs; December 19, 2014**"
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