{
  "title": "Fiscal Sustainability in African HIPC Countries: A Policy Dilemma?",
  "publication": "IMF Working Papers, September 1, 2003",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-sustainability-in-african-hipc-countries-a-policy-dilemma-16697",
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  "summary": "This paper looks at the link between fiscal policy and debt sustainability in a number of African countries participating in the Heavily Indebted Poor Countries (HIPC) Initiative.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Examines the link between fiscal policy and debt sustainability in a number of African countries participating in the Heavily Indebted Poor Countries (HIPC) Initiative.\n- Core conclusion: on the basis of current fiscal policies, debt levels will remain unsustainable even after these countries graduate from the HIPC Initiative."
    },
    {
      "heading": "Key findings",
      "content": "- Debt levels will remain unsustainable under current fiscal policies even after HIPC graduation.\n- HIPC Initiative requirements imply a significant increase in poverty-reducing expenditure for participating countries.\n- Increased poverty-reducing expenditure could result in weaker fiscal primary balances and a worsening debt sustainability outlook.\n- Offsetting fiscal tightening may not be viable in these countries."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Ensuring debt sustainability may require increased availability of nondebt-creating grants.\n- Without increased nondebt-creating grants, debt sustainability in HIPC countries may prove elusive in the long term."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subjects: Debt sustainability, Exchange rate adjustments, External debt, Fiscal policy, Fiscal stance, Foreign exchange\n- Keywords: concessional financing, creating flow, debt level, debt problem, debt ratio, Debt sustainability, debt-sustainability target, exchange rate, Exchange rate adjustments, Fiscal stance, GDP ratio, HIPC completion point, HIPC Initiative, Sub-Saharan Africa, sustainability threshold, WP\n\n---\n\n Content in this bundle\n\n- Fiscal sustainability in African HIPC Countries: A Policy Dilemma? - WP/03/187\n  - Fiscal sustainability in African HIPC Countries: A Policy Dilemma? - WP/03/187 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Fiscal sustainability in African HIPC Countries: A Policy Dilemma? - WP/03/187 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-sustainability-in-african-hipc-countries-a-policy-dilemma-16697"
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    "Authors: Annalisa Fedelino, Alina Kudina",
    "Published: September 1, 2003",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451859539.001",
    "Examines the link between fiscal policy and debt sustainability in a number of African countries participating in the Heavily Indebted Poor Countries (HIPC) Initiative.",
    "Core conclusion: on the basis of current fiscal policies, debt levels will remain unsustainable even after these countries graduate from the HIPC Initiative.",
    "Debt levels will remain unsustainable under current fiscal policies even after HIPC graduation.",
    "HIPC Initiative requirements imply a significant increase in poverty-reducing expenditure for participating countries.",
    "Increased poverty-reducing expenditure could result in weaker fiscal primary balances and a worsening debt sustainability outlook.",
    "Offsetting fiscal tightening may not be viable in these countries.",
    "Ensuring debt sustainability may require increased availability of nondebt-creating grants.",
    "Without increased nondebt-creating grants, debt sustainability in HIPC countries may prove elusive in the long term.",
    "Subjects: Debt sustainability, Exchange rate adjustments, External debt, Fiscal policy, Fiscal stance, Foreign exchange",
    "Keywords: concessional financing, creating flow, debt level, debt problem, debt ratio, Debt sustainability, debt-sustainability target, exchange rate, Exchange rate adjustments, Fiscal stance, GDP ratio, HIPC completion point, HIPC Initiative, Sub-Saharan Africa, sustainability threshold, WP",
    "**Fiscal sustainability in African HIPC Countries: A Policy Dilemma? - WP/03/187**"
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