Central African Republic : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Central African Republic (C.A.R.) continues to be assessed at high risk of external debt distress. This rating is unchanged from the previous analysis and consistent with the staff report of December 2017. Under the baseline scenario, one debt burd...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/628021537332497466/Central-African-Republic-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30524 |
| Summary: | Central African Republic (C.A.R.)
continues to be assessed at high risk of external debt
distress. This rating is unchanged from the previous
analysis and consistent with the staff report of December
2017. Under the baseline scenario, one debt burden indicator
breaches its threshold. And stress tests show that both
external and total public debt sustainability is vulnerable
to slower gross domestic product (GDP), export, and revenue
growth. For total public and publicly guaranteed (PPG) debt
(external plus domestic), the debt-to-GDP indicator remains
below its prudent benchmark. However, the existence of large
arrears to suppliers and unpaid public-sector wages in the
domestic debt stock justifies the assessment of a heightened
overall risk of debt distress. Contingent liabilities can
further exacerbate vulnerability concerns. To safeguard debt
sustainability, the government’s investment program requires
grant financing, with highly concessional debt financing to
be considered only in exceptional cases. |
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