Sovereign Debt - Focus Areas

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Analysis

Analysis to identify debt vulnerabilities covers both global or regional debt trends and country-specific assessments, so-called Debt Sustainability Analyses (DSAs). This analysis serves the purpose of identifying debt risks and providing advice on how to address them as early as possible.

Analytical papers on debt trends

The Evolution of Public Debt Vulnerabilities in Lower Income Economies▸ Macroeconomic Developments and Prospects in Low-Income Developing Countries—2019▸ Staff Note for the G20 International Financial Architecture Working Group (IFAWG) – Recent Developments in Local Currency Bond Markets in Emerging Economies▸ Fiscal Monitor, October 2016: Debt: Use it Wisely▸

Debt Sustainability Frameworks and Guidance

Factsheet: Joint World Bank-IMF Debt Sustainability Framework for Low-Income Countries▸ Debt Sustainability Analysis Low-Income Countries▸ Debt Sustainability Analysis for Market-Access Countries▸ Some Policy Lessons from Country Applications of the DIG and DIGNAR Models▸

  

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Debt Crisis Prevention

Debt crisis prevention through a multi-pronged approach incl. fostering debt transparency and better public sector debt data; supporting members’ capacity development in adopting prudent public debt management framework incl. the formulation of a medium-term debt management strategy; developing the local currency bond market; and exploring other ways, incl. the adaptation of the IMF’s own analytical tools and policies, to mitigate debt risks.

Update on the Joint IMF-WB Multipronged Approach to Address Debt Vulnerabilities▸

Working with Creditors on Sustainable Financing

G20 Operational Guidelines for Sustainable FinancingꟷSecond Self-Assessment Survey Results and Policy Recommendations▸ G20 Operational Guidelines for Sustainable FinancingꟷDiagnostic Tool▸ Survey: G20 Operational Guidelines for Sustainable FinancingꟷDiagnostic Tool▸

Debt Transparency

G20 Notes on Strengthening Public Debt Transparency▸ Collateralized Transactions – Key Considerations for Public Lenders and Borrowers▸ Public Sector Debt Definitions and Reporting in Low-Income Developing Countries▸

Debt Limits Policy

Reform of the Policy on Public Debt Limits in IMF-Supported Programs, November 2020▸ Staff Guidance Note on the Implementation of Public Debt Limits in Fund-Supported Programs, May 25, 2021▸ Public Debt Limits in IMF-Supported Programs▸ Reform of the Policy on Public Debt Limits in Fund-Supported Programs, November 14, 2014▸

State-Contingent Debt Instruments

The Role of State-Contingent Debt Instruments in Sovereign Debt Restructurings▸ State-Contingent Debt Instruments for Sovereigns▸ Uncertainty Premia, Sovereign Default Risk, and State-Contingent Debt▸

Local Currency Bond Market Development

Joint IMF-World Bank Guidance Note for Developing Local Currency Bond Markets▸ Local Currency Bond Markets – A Diagnostic Framework▸ Developing Government Bond Markets – A Handbook▸

Public Debt Management

Revised Guidelines for Public Debt Management▸ Strengthening Debt Management Practices – Lessons from Country Experiences and Issues Going Forward▸

Medium-term Debt Management Strategy

Developing a Medium-term Debt Management Strategy Framework – Updated Guidance Note for Country Authorities▸ Medium-term Debt Management Strategy – An Assessment of Recent Capacity Building▸

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Debt Crisis Resolution

Debt crisis resolution can be achieved through a combination of policy adjustment and measures to restore growth. But in some cases, adjusting policies is not enough to address the debt problem, and a debt restructuring is necessary. In such cases, an IMF-supported program can complement the debt restructuring by the member country, with macroeconomic policies and fresh financing to enable a return to medium-term viability. More broadly, the IMF is also lending its support to improving the international architecture for sovereign debt restructurings, which is critical to enable faster and more effective debt reduction.

Reform of the International Debt Architecture is Urgently Needed▸

The IMF’s Lending Framework and Sovereign Debt

Issues in Restructuring of Domestic Sovereign Debt▸ Sovereign Debt Restructuring—Recent Developments and Implications for the Fund’s Legal and Policy Framework▸ The Fund’s Lending Framework and Sovereign Debt - Preliminary Considerations▸ The Fund's Lending Framework and Sovereign Debt-Further Considerations▸

Private Sector Involvement

The International Architecture for Resolving Sovereign Debt Involving Private-Sector Creditors—Recent Developments, Challenges, And Reform Options▸ Strengthening the Contractual Framework to Address Collective Action Problems in Sovereign Debt Restructuring▸ Fourth Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contract▸

Arrears Policies

Reviews of the Fund's Sovereign Arrears Policies and Perimeter▸ Fund Policy on Lending into Arrears to Private Creditors—Further Consideration of the Good Faith Criterion▸ Reforming the Fund's Policy on Non-Toleration of Arrears to Official Creditors▸

Debt Relief Initiatives

G20 Common Framework for Debt Treatments beyond the DSSI▸ COVID-19 Special Series Note: The Common Framework: Utilizing its Flexibility to Support Developing Countries’ Recovery▸ Debt Service Suspension Initiative (DSSI)▸ Catastrophe Containment and Relief Trust (CCRT)▸ Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative▸ Multilateral Debt Relief Initiative (MDRI)▸