This DSA was prepared jointly with the World Bank, and in collaboration with the Asian Development Bank, in accordance with the Debt Sustainability Framework for low-income countries approved by the Executive Boards of the IMF and IDA. The debt data underlying this exercise were provided by the Samoan authorities.
Samoa is classified as a “strong performer” according to the three-year average of IDA’s Country Policy and Institutional Assessment (CPIA) index under the joint IMF/IDA debt sustainability framework. The thresholds for “strong performers” are: 50 percent for PV of debt to GDP; 200 percent for PV of debt to exports; 300 percent for PV of debt to revenues; 25 percent debt service to exports; and 35 percent debt service to revenues.
See “Debt Sustainability in Low-Income Countries: Proposal for an Operational Framework and Policy Implications” (http://www.imf.org/external/np/pdr/sustain/2004/020304.htm and IDA/SECM2004/0035, 2/3/04), “Debt Sustainability in Low-Income Countries: Further Considerations on an Operational Framework and Policy Implications” (http://www.imf.org/external/np/pdr/sustain/2004/091004.htm and IDA/SECM2004/0629, 9/10/04), and reference to “Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries” (http://www.imf.org/external/pp/longres.aspx?id=4419).
Debt Management Assessment Performance prepared by the World Bank (January 2010).
The fiscal baseline assumes that creditors do not exercise existing guarantees on SOE debt.
While the PV of debt-to-GDP ratio also exceeds its policy-dependent threshold initially due to a one-time real deprecation, it follows a downward trajectory and drops below 50 percent of GDP in 2015.