PRMED is in charge of implementing the Debt Sustainability Framework for Low-Income Countries (DSF) initiative. This joint World Bank-IMF framework aims to support Low-Income Countries’ (LICs) efforts to achieve their development goals without creating future debt problems. It also aims to keep countries that have received debt relief under the HIPC Initiative and the MDRI on a sustainable track. The framework allows creditors to tailor their financing terms in anticipation of future risks and helps clients balance the need for funds with the ability to repay their debts. In addition to helping creditors tailor their terms, the framework serves as the basis for IDA financing decisions regarding the grant-loan mix, which is linked directly to the country’s risk of debt distress rating under the DSF assessment. While the debt sustainability in low income countries is based on CPIA related, indicative thresholds applied under the DSF, debt levels in middle income countries (MICs) are assessed with the help of other tools. One of the tools used in PRMED can be found in the fiscal policy section (see fiscal sustainability).

• Debt Sustainability Analysis (DSA) - [By Country]
• How to do a Debt Sustainability Analysis for Low-Income Countries - [World Bank Guide]
• Debt Sustainability Framework for Low-Income Countries - [English] [French]
• LIC DSA Templates - [Zip File] (Updated: OCT 2011)
• Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries - [External Version]
• Subnational Fiscal and Debt Sustainability Analysis - [Topic]
• Stress Testing in the Debt Sustainability Framework (DSF) for Low-Income Countries (May 2011) - [Document]

• A Review of Some Aspects of the Low-Income Country Debt Sustainability Framework (August 2009) - [Document]
• Applying the Debt Sustainability Framework for Low-Income Countries Post Debt Relief (November 2006) - [Document]
• Review of Low-Income Country Debt Sustainability Framework and Implications of the MDRI (March 2006) - [Document]
• When Is External Debt Sustainable? (March 2006) - [Document]
• Operational Framework for Debt Sustainability Assessments in Low-Income Countries: Further Considerations (March 2005) - [Document]
• Public Summary: Debt Sustainability in Low-Income Countries: Further Considerations on an Operational Framework and Policy Implications (November 2004) - [Document]
• Debt Sustainability in Low-Income Countries: Further Considerations on an Operational Framework and Policy Implications (September 2004) - [Document]
• Debt Sustainability in Low-Income Countries: Proposal for an Operational Framework and Policy Implications (February 2004) - [Document]