Policy Papers

Reform of the Policy on Public Debt Limits in IMF-Supported Programs

Publication Date:

November 11, 2020

Electronic Access:

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Summary:

This paper evaluates the IMF’s policy on the use of quantitative limits on public debt in IMF-supported programs (the “debt limits policy”) and proposes a number of modifications. The review is taking place at a time when many countries are experiencing heightened debt vulnerabilities or actual debt distress, aggravated by the COVID-19 shock, and occurring against the backdrop of a changing credit landscape in which concessional finance is scarcer relative to countries’ investment needs.

Series:

Policy Paper No. 2020/061

Subject:

Asset and liability management Concessional external borrowing Debt limits Debt sustainability External debt Government debt management Public debt Public financial management (PFM)

Frequency:

occasional