This is the first debt sustainability analysis prepared for Côte d’Ivoire using the debt sustainability framework for low-income countries developed jointly by the IMF and the World Bank. The DSA, produced jointly by Fund and Bank staffs (see “Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework for Low-Income Countries (LICs),” April 17, 2007) is based on external and public debt data from the Ivoirien authorities, and on IMF and World Bank staff estimates. The IMF staff report on the 2007 Article IV Consultation (see this Country Report) provides additional information.
Under the original HIPC Initiative, Côte d’Ivoire had reached the decision point in 1998, but not the completion point. In March 2002, the IMF and IDA Boards discussed the preliminary decision point document under the enhanced HIPC Initiative, posted on the IMF Website on March 12, 2002, but the decision point, foreseen for late 2002, was not considered because of the crisis and interruption of the PRGF-supported program.
See “Heavily Indebted Poor Countries (HIPC) Initiative–Issues Related to the Sunset Clause,” posted on the IMF Website August 16, 2006.
The HIPC methodology to calculate the NPV of debt-to-revenue ratio differs from the calculation in this analysis. No direct conclusions can thus be drawn from this analysis to the HIPC debt reduction factor.
Under an understanding between the World Bank and the Ivoirien authorities, the government of Côte d’Ivoire has agreed to complete its arrears clearance to the World Bank by the first quarter of 2008. The authorities’ economic program, to be supported by IMF EPCA, foresees achieving that already in 2007.
For the share of this debt that is not multilateral or official bilateral, but on commercial terms, a grace period of 5 years and a maturity of 10 years is assumed.
See ¶5 and footnote 6.