IMF Staff Country Reports

St. Lucia: Debt Sustainability Analysis

Publication Date:

May 23, 2003

Electronic Access:

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Summary:

This paper presents a debt sustainability analysis for St. Lucia. The medium-term scenario prepared by the IMF staff assumes continued fiscal consolidation and thus is compatible with sustainable debt levels even in the presence of adverse economic shocks. Stress tests show that stabilizing the debt/GDP ratio for the public sector at around the levels prevailing in 2002/03 would allow the absorption of economic shocks without generating unstable debt dynamics. Most temporary shocks would, however, shift the debt ratio upward, and further adjustment would be necessary to restore the preshock level.

Series:

Country Report No. 2003/139

Subject:

Debt sustainability analysis External debt Financial sector policy and analysis Financial services Public debt Real interest rates Stress testing