## External Debt Sustainability in HIPC Completion Point Countries: An Update

_IMF Working Papers, June 1, 2009_

## Source details

**Canonical URL:** [External Debt Sustainability in HIPC Completion Point Countries: An Update](https://www.imf.org/en/publications/wp/issues/2016/12/31/external-debt-sustainability-in-hipc-completion-point-countries-an-update-23029)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/external-debt-sustainability-in-hipc-completion-point-countries-an-update-23029/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/external-debt-sustainability-in-hipc-completion-point-countries-an-update-23029/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/external-debt-sustainability-in-hipc-completion-point-countries-an-update-23029/bundle-manifest.json)

## Bibliographic details
- Authors: Jie Yang, Dan Nyberg
- Published: June 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872750.001

---

### Summary findings
- Despite substantial debt relief to HIPC Initiative completion point countries, long-term debt sustainability remains a challenge.
- The paper examines a number of structural factors affecting external debt sustainability.
- Key diagnostic findings:
  - (i) the export base broadly remains narrow;
  - (ii) fiscal revenue mobilization lags behind in some countries; and
  - (iii) policy and institutional frameworks are still relatively weak.
- Conclusion: Achieving and maintaining long-term debt sustainability in completion point countries will require continued structural reforms, timely donor support, and close monitoring of new non-concessional borrowing.

### Structural factors affecting external debt sustainability
- Export structure:
  - The export base broadly remains narrow in HIPC completion point countries.
- Fiscal capacity:
  - Fiscal revenue mobilization lags behind in some countries.
- Policy and institutions:
  - Policy and institutional frameworks are still relatively weak.

### Policy recommendations and monitoring priorities
- Continued structural reforms to broaden economic bases and strengthen resilience.
- Timely donor support to ensure financing needs are met without resorting to destabilizing borrowing.
- Close monitoring of new non-concessional borrowing to prevent erosion of debt sustainability gains.

---

## Content in this bundle

- **_wp09128**
  - [_wp09128 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09128.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp09128 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09128.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/external-debt-sustainability-in-hipc-completion-point-countries-an-update-23029_