## Reform of the Policy on Public Debt Limits in IMF-Supported Programs

_Policy Papers, November 11, 2020_

## Source details

**Canonical URL:** [Reform of the Policy on Public Debt Limits in IMF-Supported Programs](https://www.imf.org/en/publications/policy-papers/issues/2020/11/11/reform-of-the-policy-on-public-debt-limits-in-imf-supported-programs-49876)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2020/11/11/reform-of-the-policy-on-public-debt-limits-in-imf-supported-programs-49876/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2020/11/11/reform-of-the-policy-on-public-debt-limits-in-imf-supported-programs-49876/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2020/11/11/reform-of-the-policy-on-public-debt-limits-in-imf-supported-programs-49876/bundle-manifest.json)

## Bibliographic details
- Published: November 11, 2020
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513560885.007

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### Summary
- This paper evaluates the IMF’s policy on the use of quantitative limits on public debt in IMF-supported programs (the “debt limits policy”) and proposes a number of modifications.
- The review is taking place:
  - at a time when many countries are experiencing heightened debt vulnerabilities or actual debt distress,
  - aggravated by the COVID-19 shock,
  - and occurring against the backdrop of a changing credit landscape in which concessional finance is scarcer relative to countries’ investment needs.

### Major themes and focus
- Evaluation of the debt limits policy governing quantitative limits on public debt in IMF-supported programs.
- Proposals for modifications to the debt limits policy.
- Contextual drivers emphasized:
  - heightened debt vulnerabilities and actual debt distress,
  - the COVID-19 shock,
  - a changing credit landscape with concessional finance scarcer relative to countries’ investment needs.

### Subject areas and keywords
- Subject: Asset and liability management, Concessional external borrowing, Debt limits, Debt sustainability, External debt, Government debt management, Public debt, Public financial management (PFM)
- Keywords: Africa, Concessional external borrowing, debt conditionality, Debt limits, debt limits policy, Debt sustainability, debt vulnerability, financing arrangement, fund staff, Global, Government debt management, heightened debt vulnerability, low income countries, PP

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2020/english/ppea2020061.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2020/english/ppea2020061.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2020/11/11/reform-of-the-policy-on-public-debt-limits-in-imf-supported-programs-49876_