Debt Sustainability Framework for Low-Income Countries (DSF)

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.  It 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.  IDA bases its financing decisions (grant-loan mix) on the country’s risk of debt distress assessed under the DSF.

Publications:

• A Review of Some Aspects of the Low-Income Country Debt Sustainability Framework (August 2009) - [Document]
• Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries (October 2008) - [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]