Policy Papers

Preserving Debt Sustainability in Low-Income Countries in the Wake of the Global Crisis

April 1, 2010

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Preserving Debt Sustainability in Low-Income Countries in the Wake of the Global Crisis, (USA: International Monetary Fund, 0) accessed December 22, 2024

Summary

The global financial crisis has had a significant impact on low-income countries (LICs)’ debt vulnerabilities. Recent debt sustainability analyses (DSAs) indicate that external and fiscal financing requirements have increased. In addition, standard measures of a country’s capacity to repay debt―GDP, exports, and fiscal revenue―are expected to be permanently lower. On average, debt ratios are therefore expected to deteriorate in the near term, particularly for public debt.

Subject: Cross country analysis, Debt relief, Debt sustainability, External financing, Financial crisis, Fiscal policy, Global Financial Crisis 2008-2009, HIPC Initiative, Low-income developing countries, Public debt

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