Cabo Verde - Joint World Bank-IMF Debt Sustainability Analysis
Cabo Verde’s risk of external and overall debt distress is rated “high” as in the previous debt sustainability analysis (DSA). The present value (PV) of public and publicly-guaranteed (PPG) external debt-to-GDP ratio breaches its threshold in 2019-...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/875381570788062437/Cabo-Verde-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32575 |
| Summary: | Cabo Verde’s risk of external and
overall debt distress is rated “high” as in the previous
debt sustainability analysis (DSA). The present value (PV)
of public and publicly-guaranteed (PPG) external debt-to-GDP
ratio breaches its threshold in 2019-2022 under the baseline
and protractedly under stress test scenarios. The PV of
total public debt-to-GDP ratio is projected to recede below
its threshold from 2026 under the baseline and breaches its
prescribed limit under stress test scenarios. The debt
sustainability assessment is predicated on sustained fiscal
consolidation and successful restructuring of state-owned
enterprises (SOEs). Prudent borrowing policies and a
strengthened debt management strategy are critical to
containing debt accumulation. In view of Cabo Verde’s
vulnerability to exogenous shocks, growth-enhancing
structural reforms remain critical to bringing public debt
to sustainable levels. |
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