{
  "title": "Review of the Debt Sustainability Framework for Low Income Countries: Proposed Reforms",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf",
  "canonical": "https://www.imf.org/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf",
  "overlayPath": "/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/index.md",
  "summary": "The Debt Sustainability Framework for Low-income Countries (LIC DSF) has been the cornerstone of assessments of risks to debt sustainability in LICs.",
  "sections": [
    {
      "heading": "Overview of the LIC DSF",
      "content": "- The Debt Sustainability Framework for Low-income Countries (LIC DSF) is described as the cornerstone of assessments of risks to debt sustainability in LICs.\n- Core functions of the framework:\n  - Classifies countries based on their assessed debt-carrying capacity.\n  - Estimates threshold levels for selected debt burden indicators.\n  - Evaluates baseline projections and stress test scenarios relative to these thresholds.\n  - Combines indicative rules and staff judgment to assign risk ratings of external debt distress."
    },
    {
      "heading": "Findings and identified shortcomings",
      "content": "- The framework has demonstrated operational value since the last review in 2012.\n- Areas for improvement identified through staff analysis and stakeholder feedback:\n  - Gaps in the framework given the evolving nature of risks facing LICs.\n  - Complexity of the framework.\n  - Lack of transparency in aspects of the framework.\n- Objective concern: ensure the framework provides early warnings of potential debt distress without unnecessarily constraining borrowing for development."
    },
    {
      "heading": "Proposed reform principles",
      "content": "- Two over-arching principles guiding the proposed reforms:\n  - The core architecture of the DSF—model-based results complemented by judgment—remains appropriate.\n  - Reforms should maintain an appropriate balance by providing early warnings of potential debt distress without unnecessarily constraining borrowing for development."
    },
    {
      "heading": "Purpose and scope of the paper",
      "content": "- The paper proposes a set of reforms to enhance the value of the LIC DSF for all users.\n- Emphasis on enhancing performance in assessing risks, improving transparency, and addressing identified gaps.\n\nInternational Monetary Fund — Review of the Debt Sustainability Framework for Low Income Countries: Proposed Reforms, October 2, 2017\n\n---\n\n Content in this bundle\n\n- Policy Paper\n  - Policy Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Policy Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/index.md)",
    "[Structured JSON version](/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/index.json)",
    "[Bundle manifest](/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/bundle-manifest.json)",
    "Published: October 2, 2017",
    "The Debt Sustainability Framework for Low-income Countries (LIC DSF) is described as the cornerstone of assessments of risks to debt sustainability in LICs.",
    "Core functions of the framework:",
    "The framework has demonstrated operational value since the last review in 2012.",
    "Areas for improvement identified through staff analysis and stakeholder feedback:",
    "Objective concern: ensure the framework provides early warnings of potential debt distress without unnecessarily constraining borrowing for development.",
    "Two over-arching principles guiding the proposed reforms:",
    "The paper proposes a set of reforms to enhance the value of the LIC DSF for all users.",
    "Emphasis on enhancing performance in assessing risks, improving transparency, and addressing identified gaps.",
    "**Policy Paper**"
  ],
  "related": [
    {
      "title": "Policy Paper",
      "role": "paper",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/pp/2017/pp082217lic-dsf.pdf",
      "summary": {
        "path": "/-/media/files/publications/pp/2017/pp082217lic-dsf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/pp/2017/pp082217lic-dsf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/index.md",
    "json": "/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/index.json",
    "bundleManifest": "/en/publications/policy-papers/issues/2017/10/02/pp082217lic-dsf/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-19T00:34:38.880Z"
}