Liberia - Joint World Bank-IMF Debt Sustainability Analysis
The Debt Sustainability Analysis (DSA) suggests that Liberia remains at moderate risk of debt distress with limited space to accommodate shocks. The country’s debt carrying capacity remains medium, but the rating has declined from 3.1 to 2.77. The...
| Main Authors: | , |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/277671570833880795/Liberia-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-June-2019 http://hdl.handle.net/10986/32570 |
| Summary: | The Debt Sustainability Analysis (DSA)
suggests that Liberia remains at moderate risk of debt
distress with limited space to accommodate shocks. The
country’s debt carrying capacity remains medium, but the
rating has declined from 3.1 to 2.77. The authorities have
pursued non-concessional loans, but none has been disbursed
yet. The government has instead borrowed U.S. dollars from
the Central Bank of Liberia (CBL) to close the financing gap
in FY2018. Such new borrowing, as well as the legacy U.S.
dollar debt from the civil war time, are both incorporated
in the new DSA. The State-owned Enterprises (SOE) guaranteed
debt is also incorporated. Liberia will edge closer to high
risk of debt distress with a small change in the terms of
both domestic and external debt or a failure to adjust
primary expenditure to the available revenue envelope over
the medium-term. |
|---|