Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries
Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries

Author: World Bank

Publisher: International Monetary Fund

Published: 2013-05-10

Total Pages: 61

ISBN-13: 1498341179

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Low-income countries (LICs) face significant challenges in meeting their development objectives while at the same time ensuring that their external debt remains sustainable. In April 2005, the Executive Boards of the International Monetary Fund (IMF) and the International Development Association (IDA) endorsed the Debt Sustainability Framework (DSF), a tool developed jointly by IMF and World Bank staff to conduct public and external debt sustainability analysis in low-income countries. The DSF aims to help guide the borrowing decisions of LICs, provide guidance for creditors’ lending and grant allocation decisions, and improve World Bank and IMF assessments and policy advice.

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries
Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2010-01-25

Total Pages: 55

ISBN-13: 1498337945

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The objective of the joint Bank-Fund debt sustainability framework for low-income countries is to support LICs in their efforts to achieve their development goals without creating future debt problems. Countries that have received debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) need to be kept on a sustainable track. Under the framework, country DSAs are prepared jointly by Bank and Fund staff, with close collaboration between the two staffs on the design of the macroeconomic baseline, alternative scenarios, the debt distress rating, and the drafting of the write-up

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries
Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries

Author: World Bank

Publisher: International Monetary Fund

Published: 2008-06-10

Total Pages: 34

ISBN-13: 1498334059

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The objective of the joint Fund-Bank debt sustainability framework for low-income countries is to support LICs in their efforts to achieve their development goals without creating future debt problems. Countries that have received debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) need to be kept on a sustainable track. Under the framework, country DSAs are prepared jointly by Bank and Fund staff, with close collaboration between the two staffs on the design of the macroeconomic baseline, alternative scenarios, the debt distress rating, and the drafting of the write-up.

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries (LICs)
Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries (LICs)

Author:

Publisher: INTERNATIONAL MONETARY FUND

Published: 2007-04-16

Total Pages: 31

ISBN-13: 9781498333603

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The guidance note covers analytical aspects of the DSA framework, including the main changes introduced in this note. It also discusses DSA design and operational implications and technical modalities for preparing DSAs including timing, information sharing, review, and clearance. It outlines arrangements for HIPCs and discusses a communications strategy. An annex provides a user’s guide to the templates.

Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries
Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries

Author: Internationaler Währungsfonds

Publisher:

Published: 2013

Total Pages: 0

ISBN-13:

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Low-income countries (LICs) face significant challenges in meeting their development objectives while at the same time ensuring that their external debt remains sustainable. In April 2005, the Executive Boards of the International Monetary Fund (IMF) and the International Development Association (IDA) endorsed the Debt Sustainability Framework (DSF), a tool developed jointly by IMF and World Bank staff to conduct public and external debt sustainability analysis in low-income countries. The DSF aims to help guide the borrowing decisions of LICs, provide guidance for creditors' lending and grant allocation decisions, and improve World Bank and IMF assessments and policy advice.

Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries
Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2018-02-14

Total Pages: 72

ISBN-13: 1498307264

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Low-income countries (LICs) face significant challenges in meeting their Sustainable Development Goals (SDGs) while at the same time ensuring that their external debt remains sustainable. In April 2005, the Executive Boards of the International Monetary Fund (IMF) and the International Development Association (IDA) approved the introduction of the Debt Sustainability Framework (DSF), a tool developed jointly by IMF and World Bank staff to conduct public and external debt sustainability analysis in low-income countries. The DSF has since been serving to help guide the borrowing decisions of LICs, provide guidance for creditors’ lending and grant allocation decisions, and improve World Bank and IMF assessments and policy advice. The latest review of the framework was approved by the Executive Boards in September 2017. This introduced reforms to ensure that the DSF remains appropriate for the rapidly changing financing landscape facing LICs and to further improve insights into debt vulnerabilities. This note provides operational and technical guidance on the implementation of the reformed framework.

Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries (LICs).
Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries (LICs).

Author: Internationaler Währungsfonds

Publisher:

Published: 2007

Total Pages: 0

ISBN-13:

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The guidance note covers analytical aspects of the DSA framework, including the main changes introduced in this note. It also discusses DSA design and operational implications and technical modalities for preparing DSAs including timing, information sharing, review, and clearance. It outlines arrangements for HIPCs and discusses a communications strategy. An annex provides a user's guide to the templates.

Supplement to 2018 Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries
Supplement to 2018 Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2024-08-05

Total Pages: 32

ISBN-13:

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This Supplement provides additional guidance to IMF and World Bank staff on the implementation of the Bank-Fund Debt Sustainability Framework for Low Income Countries (LIC-DSF) approved in 2017 by the IMF and World Bank Boards. It complements the 2018 Bank-Fund Guidance Note on the LIC-DSF. Since the publication of the 2018 Guidance Note, several issues have increased in significance, requiring more tailored guidance on the implementation of the LIC-DSF to address these issues, including: • Greater prominence of risks from climate change. • Further increase in borrowing on commercial terms and in domestic markets. • Increased number and complexity of debt restructurings. This Supplement to the 2018 Guidance Note on the LIC-DSF provides further guidance on how to address these issues within the current framework. All aspects of the 2018 LIC-DSF Guidance Note remain in effect, except as modified in this Supplement.

Staff Guidance Note on the Sovereign Risk and Debt Sustainability Framework for Market Access Countries
Staff Guidance Note on the Sovereign Risk and Debt Sustainability Framework for Market Access Countries

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2022-08-08

Total Pages: 136

ISBN-13:

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This note provides operational guidance for the use of the Sovereign Risk and Debt Sustainability Framework (SRDSF), which replaces the Debt Sustainability Framework for Market Access Countries. The SRDSF introduces improvements in organization, methodology, transparency, and communication when analyzing public debt issues in countries that mainly finance themselves with market-based debt. After its phased adoption beginning [June 2022], it will become the Fund’s principal tool for assessing public debt sustainability.

Review of the Debt Sustainability Framework for Low Income Countries
Review of the Debt Sustainability Framework for Low Income Countries

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2017-02-10

Total Pages: 111

ISBN-13: 1498346359

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The Debt Sustainability Framework for Low-income Countries (LIC DSF) has been the cornerstone of assessments of risks to debt sustainability in LICs. The framework classifies countries based on their assessed debt-carrying capacity, estimates threshold levels for selected debt burden indicators, evaluates baseline projections and stress test scenarios relative to these thresholds, and then combines indicative rules and staff judgment to assign risk ratings of external debt distress. The framework has demonstrated its operational value since the last review was conducted in 2012, but there are areas where new features can be introduced to enhance its performance in assessing risks. Against the backdrop of the evolving nature of risks facing LICs, both staff analysis and stakeholder feedback suggest gaps in the framework to be addressed. Complexity and lack of transparency have also been highlighted as causes for concern. This paper proposes a set of reforms to enhance the value of the LIC DSF for all users. In developing these reforms, staff has been guided by two over-arching principles: a) the core architecture of the DSF—model-based results complemented by judgment—remains appropriate; and b) reforms should ensure that the DSF maintains an appropriate balance by providing countries with early warnings of potential debt distress without unnecessarily constraining their borrowing for development.