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INTERNATIONAL MONETARY FUND

WORLD BANK GROUP AND INTERNATIONAL MONETARY FUND SUPPORT FOR DEBT RELIEF UNDER THE COMMON FRAMEWORK AND BEYOND

March 2021

IMF staff regularly produces papers proposing new IMF policies, exploring options for reform, or reviewing existing IMF policies and operations. The Report prepared by IMF and World Bank staff and completed on March 25, 2021, has been released.

The staff report was issued to the Executive Board for information. The report was prepared by IMF. The views expressed in this paper are those of the IMF staff and do not necessarily represent the views of the IMF's Executive Board.

The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents.

Electronic copies of IMF Policy Papers are available to the public from

http://www.imf.org/external/pp/ppindex.aspx

International Monetary Fund

Washington, D.C.

© 2021 International Monetary Fund

Title Page

WORLD BANK GROUP

INTERNATIONAL MONETARY FUND

WORLD BANK GROUP AND INTERNATIONAL MONETARY FUND SUPPORT FOR DEBT RELIEF

UNDER THE COMMON FRAMEWORK AND BEYOND

March 25, 2021

Prepared by the staffs of the World Bank Group and the International Monetary Fund

Approved by

Marcello Estevão (WBG) and Jeromin Zettelmeyer (IMF)

Table of Content

  • I. INTRODUCTION

  • II. DEBT VULNERABILITIES

  • III. SHORT-TERM BREATHING SPACE: DSSI EXTENSION OPTIONS

  • IV. TAILORED DEBT TREATMENT: MAXIMIZING THE IMPACT OF THE COMMON FRAMEWORK

  • V. COMPLEMENTARY ACTIONS BEYOND THE DSSI AND COMMON FRAMEWORK

  • VI. KEY QUESTIONS TO GOVERNORS

  • FIGURE

  • 1. IDA-Eligible Countries: Risk of External Debt Distress

List of Abbreviations and Acronyms

ASA

Advisory Service and Analytics

CF

Common Framework

DLP

Debt Limits Policy

DPF

Development Policy Financing

DPO

Development Policy Operation

DRF

Debt Reduction Facility

DSA

Debt Sustainability Analysis

DSF

Debt Sustainability Framework

GDP

Gross Domestic Product

DSSI

Debt Service Suspension Initiative

GRID

Green, resilient and inclusive development

IDA

International Development Association

IDS

International Debt Statistics

IFI

International Financial Institutions

IMF

International Monetary Fund

LIC

Low-Income Country

LIC DSF

Joint Bank-Fund Debt Sustainability Framework for LICs

MDB

Multilateral Development Bank

MOU

Memorandum of Understanding

PC

Paris Club

PPG

Public and Publicly Guaranteed

SDFP

Sustainable Development Finance Policy

SDR

Special Drawing Right

TA

Technical Assistance

WBG

World Bank Group

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World Bank Group And International Monetary Fund Support For Debt Relief Under The Common Framework And Beyond
Author:
International Monetary Fund
and
World Bank