LIC and MIC Debt Sustainability Framework
The IMF and World Bank have two Debt Sustainability Framework (DSF) initiatives, one for low income countries (LICs) and one for middle income countries (MICs), which aim to guide countries’ borrowing decisions so as to meet their financing needs and maintain debt sustainability. The approach is forward-looking focusing on vulnerabilities to future debt distress. The DSF provides a common framework, in Excel format, for the analyses of the debt and debt service dynamics, at an aggregate level, under a baseline scenario and a set of standardised economic shocks.
For more background information and documentation on the LIC DSFs and to download the analytical tool, please go to http://www.imf.org/external/pubs/ft/dsa/lic.aspx or here.
For more information on the MIC DSF and to download the analytical tool, please go to http://www.imf.org/external/pubs/ft/dsa/lic.aspx.
To assist countries develop national capacities to use the LIC DSF, DFI has developed training materials and manuals, which available on the members only pages of the HIPC CBP website.
