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Review of The Debt Sustainability Framework For Market Access Countries
Author:
International Monetary Fund. Strategy, Policy, &amp
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Review Department
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Series:
Policy Papers
Volume/Issue:
Volume 2021: Issue 003
Language:
English
Publication Date:
03 Feb 2021
DOI:
https://doi.org/10.5089/9781513568324.007
ISBN:
9781513568324
ISSN:
2663-3493
Pages:
124
Keywords:
IMF team; resource requirement; definition of stress event; sustainability assessment; I. backtesting result; Debt sustainability analysis; Debt sustainability; Fiscal stance; Debt refinancing; Global
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A careful review has revealed significant scope to modernize and better align the MAC DSA with its objectives and the IMF’s lending framework. This note proposes replacing the current framework with a new methodology based on risk assessments at three different horizons. Extensive testing has shown that the proposed framework has much better predictive accuracy than the current one. In addition to predicting sovereign stress, the framework can be used to derive statements about debt stabilization under current policies and about debt sustainability.
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Cover Policy Papers
Policy Papers
ISSN:
2663-3493
Publisher:
International Monetary Fund