{
  "title": "Review of The Debt Sustainability Framework For Market Access Countries",
  "publication": "Policy Papers, February 3, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2021/02/03/review-of-the-debt-sustainability-framework-for-market-access-countries-50060",
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  "summary": "A careful review has revealed significant scope to modernize and better align the MAC DSA with its objectives and the IMF’s lending framework. This note proposes replacing the current framework with a new methodology based on risk assessments at three different horizons.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- A careful review has revealed significant scope to modernize and better align the MAC DSA with its objectives and the IMF’s lending framework.\n- The note proposes replacing the current framework with a new methodology based on risk assessments at three different horizons.\n- Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one.\n- In addition to predicting sovereign stress, the framework can be used to derive statements about debt stabilization under current policies and about debt sustainability."
    },
    {
      "heading": "Major themes and scope",
      "content": "- Objective: Modernize and better align the MAC DSA with its objectives and the IMF’s lending framework.\n- Proposed change: Replace the current framework with a methodology based on risk assessments at three different horizons.\n- Capabilities of the proposed framework:\n  - Predict sovereign stress.\n  - Derive statements about debt stabilization under current policies.\n  - Assess debt sustainability."
    },
    {
      "heading": "Testing and evidence",
      "content": "- Statement: Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one.\n- Backtesting and performance aspects referenced in keywords: I. backtesting result."
    },
    {
      "heading": "Policy-relevant topics covered",
      "content": "- Asset and liability management\n- Debt refinancing\n- Debt sustainability\n- Debt sustainability analysis\n- External debt\n- Fiscal policy\n- Fiscal stance\n- Monetary policy\n- Political economy\n- Public debt"
    },
    {
      "heading": "Keywords and analytic focus",
      "content": "- Debt refinancing\n- Debt sustainability\n- Debt sustainability analysis\n- definition of stress event\n- Fiscal stance\n- Global\n- I. backtesting result\n- IMF team\n- resource requirement\n- sustainability assessment\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/2021/02/03/review-of-the-debt-sustainability-framework-for-market-access-countries-50060"
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    "Published: February 3, 2021",
    "Series: Policy Papers",
    "DOI: https://doi.org/10.5089/9781513568324.007",
    "A careful review has revealed significant scope to modernize and better align the MAC DSA with its objectives and the IMF’s lending framework.",
    "The note proposes replacing the current framework with a new methodology based on risk assessments at three different horizons.",
    "Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one.",
    "In addition to predicting sovereign stress, the framework can be used to derive statements about debt stabilization under current policies and about debt sustainability.",
    "Objective: Modernize and better align the MAC DSA with its objectives and the IMF’s lending framework.",
    "Proposed change: Replace the current framework with a methodology based on risk assessments at three different horizons.",
    "Capabilities of the proposed framework:",
    "Statement: Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one.",
    "Backtesting and performance aspects referenced in keywords: I. backtesting result.",
    "Asset and liability management",
    "Debt refinancing",
    "Debt sustainability",
    "Debt sustainability analysis",
    "External debt",
    "Fiscal policy",
    "Fiscal stance",
    "Monetary policy",
    "Political economy",
    "Public debt",
    "Debt refinancing",
    "Debt sustainability",
    "Debt sustainability analysis",
    "definition of stress event",
    "Fiscal stance",
    "Global",
    "I. backtesting result",
    "IMF team",
    "resource requirement",
    "sustainability assessment",
    "**Policy Paper**"
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