Debt-Sustainability in Low-Income Countries : Proposal for an Operational Framework and Policy Implications / International Monetary Fund.

Format:

Book

Author/Creator:

International Monetary Fund, author, issuing body.

Series:

Policy Papers ; Volume 2004: Issue 012

Language:

English

Subjects (All):

Debt relief.

Physical Description:

1 online resource (84 pages).

Other Title:

Debt-Sustainability in Low-Income Countries

Place of Publication:

Washington, D.C. : International Monetary Fund, 2004.

Contents:

I. Introduction

II. Why is Debt Sustainability Important?

III. An Operational Framework for Debt Sustainability Assessments

A. General Considerations

B. Empirical Thresholds

C. Analysis of Current and Projected Debt Indicators

Long-Term Projections and Stress Testing

Analysis of the Main Debt Sustainability Concerns

IV. Policy Implications for The Global Community

A. Incorporating Debt Sustainability Considerations Into External Financing Policies

Implications for New Lending

Prospects for Increasing Aid Flows

B. Designing Instruments That Mitigate the Impact of Exogenous Shocks

V. Policy Implications for Low-Income Countries

A. Improving Policies and Institutions

B. Strengthening Debt Management

C. Increasing Resilience to Exogenous Shocks

VI. Conclusions

VII. Issues for Discussion

Text Tables

1. Empirical Debt Sustainability Ranges

2. Indicative Policy-Dependent Debt and Debt-Service Thresholds

3. Concessionality of Loans by Selected Creditors

Boxes

1. Implementing the HIPC Initiative

2. Methodology for NPV Calculations Under the Proposed Framework

3. Debt Sustainability Analysis-Illustration of the Proposed Approach

4. Domestic Debt in Low-Income Countries

5. Adopting An Ex-Ante Framework for New Lending

6. Ex-Post Mechanisms for Mitigating Exogenous Shocks

7. Official Uses of Commodity Derivative Markets

Figures

1. Official Development Assistance to Selected Low-Income Countries, Average 1995-2000

2. NPV of Debt-to-Exports Ratios in Selected Low-Income Countries, 2001

3. Frequency Distribution of the Present Value of Debt to GDP for Distress and Non-Distress Events

4. Simulations of Debt-Burden Indicators Under Alternative Scenarios, 2003-2023

5. Trends in ODA Flows, 1991-2002

6. Composition of Grant Funding, end-2001

7. NPV of Debt, Exports and Output Volatility, 1980-2001

8. Developing Countries' Vulnerability to Exogenous Shocks

Appendix I. Empirical Analysis

Appendix II. Illustration of Proposed Debt-Sustainability Framework

Appendix III. Stochastic Simulation of External Debt Ratio

References.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781498371070

1498371078