IMF Review of Debt Sustainability Framework
The IMF’s review of the Debt Sustainability Framework (DSF), its analytical tool for conducing debt sustainability analysis (DSA), recommends the following:
- More account to be taken of the impact of public investment on growth in DSAs,
- Increased consideration of remittances in the determination of debt distress ratings,
- Reducing the ‘threshold’ effects of changes in CPIA ratings,
- Lowering the DSF discount rate from 5% to 4%,
- Appling greater flexibility in treating state-owned enterprise external borrowings,
- Taking more account of Government’s views in DSA documents.
For more information go to www.imf.org/external/np
