IMF and World Bank Debt Sustainability Framework The first development occurred in October 2017, when the IMF and the World Bank released the findings of their fourth major review of the LIC- DSF (IMF 2017b). [...] The review strengthens the tools used to diagnose LIC debt vulnerability and addresses several earlier critiques of the existing DSF framework, including its unduly complex and mechanical approach, the errors in estimating the impacts of fiscal adjustment and future growth and the framework’s inflexibility to country-specific debt vulnerabilities, including exchange rate and export price volatilit [...] Recent DSAs macroeconomic impacts of debt accumulation have also increased their emphasis on longer- and on strengthening debt management, while term drivers of debt accumulation in African and downplaying the impacts of exogenous shocks, other LICs, a strong acknowledgement of some unpredictable aid flows and institutional, capacity of the structural factors that impede growth and and resource co [...] In São Tomé ignore the human dimension to development, which and Príncipe’s case, the DSA recommends structural includes ensuring financing is available to provide reforms to improve the business environment to basic needs, such as food, health, education and support private sector-led growth and to attract shelter, when determining sustainability and the level private investment to broaden the ex [...] While causes differ, in recent to better connect risks to debt sustainability with DSAs the debt-to-export threshold is breached production and trade structure and include the under the baseline scenario for almost all African costs of financing infrastructure, the Sustainable HIPCs in, or at high risk of, debt distress, including Development Goals (SDGs) and integration of the Burundi, Cameroon,
- Pages
- 8
- Published in
- Waterloo, ON, CA
