Debt Limits in Fund-Supported Programs - Proposed New Guidelines

Author: International Monetary Fund

Low-income countries (LICs) face significant challenges in meeting their development objectives, while maintaining a sustainable debt position.

Volume/Issue: Volume 2009 Issue 038

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Exports and Imports , Public Finance , PP , debt limit , CPIA , debt , Fund- , PV target , debt vulnerability , financing needs , PEFA indices , CPIA index , concessional financing , PEFA indicator , debt policy , Fund member , public goods , Fund-supported program , program country , Debt limits , Debt sustainability analysis , Public Expenditure and Financial Accountability (PEFA) , Global

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Summary

Low-income countries (LICs) face significant challenges in meeting their development objectives, while maintaining a sustainable debt position. To address this dilemma, the international community has largely advocated recourse to concessional external finance. The Fund’s existing policy and practice on external debt limits conforms to this preference.