Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis

The Central African Republic (C.A.R.) remains at high risk of external debt distress and overall high risk of debt distress under the revised Debt Sustainability Framework (DSF), unchanged from the 2018 DSA. Solvency indicators (the present values...

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Main Authors:	World Bank, International Monetary Fund
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	DEBT DISTRESS DEBT SERVICE BURDEN CONTINGENT LIABILITY PUBLIC SECTOR DEBT PUBLIC AND PUBLICLY GUARANTEED DEBT EXTERNAL DEBT DEBT RELIEF
Online Access:	http://documents.worldbank.org/curated/en/756551570788378574/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32581

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recordtype	oai_dc
spelling	okr-10986-325812021-05-25T09:28:44Z Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis World Bank International Monetary Fund DEBT DISTRESS DEBT SERVICE BURDEN CONTINGENT LIABILITY PUBLIC SECTOR DEBT PUBLIC AND PUBLICLY GUARANTEED DEBT EXTERNAL DEBT DEBT RELIEF The Central African Republic (C.A.R.) remains at high risk of external debt distress and overall high risk of debt distress under the revised Debt Sustainability Framework (DSF), unchanged from the 2018 DSA. Solvency indicators (the present values of the external public and publicly guaranteed debt-to-GDP and debt-to-exports ratios) remain below their relevant thresholds in the baseline scenario. However, liquidity indicators (debt service-to-exports and debt service-to-revenue ratios) breach their thresholds in the baseline scenario. Further considerations support the high-risk assessment: the debt indicators are sensitive to standard stress tests; macroeconomic projections are highly uncertain in a volatile security environment; and sizeable contingent liabilities, notably related to the large stock of unaudited potential domestic arrears and the limited financial information available on state-owned enterprises, could materialize. C.A.R.’s debt sustainability is also sensitive to a deterioration of the financing mix. A tailored scenario in which grant financing (of 2 percent of GDP) is replaced by concessional external debt-financing from 2021 onwards would worsen debt sustainability considerably. This shows that the government’s investment program requires grant financing, with concessional debt financing to be considered in exceptional cases. 2019-10-18T14:12:43Z 2019-10-18T14:12:43Z 2019-07 Report http://documents.worldbank.org/curated/en/756551570788378574/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32581 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Debt and Creditworthiness Study Africa Central African Republic
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	DEBT DISTRESS DEBT SERVICE BURDEN CONTINGENT LIABILITY PUBLIC SECTOR DEBT PUBLIC AND PUBLICLY GUARANTEED DEBT EXTERNAL DEBT DEBT RELIEF
spellingShingle	DEBT DISTRESS DEBT SERVICE BURDEN CONTINGENT LIABILITY PUBLIC SECTOR DEBT PUBLIC AND PUBLICLY GUARANTEED DEBT EXTERNAL DEBT DEBT RELIEF World Bank International Monetary Fund Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
geographic_facet	Africa Central African Republic
description	The Central African Republic (C.A.R.) remains at high risk of external debt distress and overall high risk of debt distress under the revised Debt Sustainability Framework (DSF), unchanged from the 2018 DSA. Solvency indicators (the present values of the external public and publicly guaranteed debt-to-GDP and debt-to-exports ratios) remain below their relevant thresholds in the baseline scenario. However, liquidity indicators (debt service-to-exports and debt service-to-revenue ratios) breach their thresholds in the baseline scenario. Further considerations support the high-risk assessment: the debt indicators are sensitive to standard stress tests; macroeconomic projections are highly uncertain in a volatile security environment; and sizeable contingent liabilities, notably related to the large stock of unaudited potential domestic arrears and the limited financial information available on state-owned enterprises, could materialize. C.A.R.’s debt sustainability is also sensitive to a deterioration of the financing mix. A tailored scenario in which grant financing (of 2 percent of GDP) is replaced by concessional external debt-financing from 2021 onwards would worsen debt sustainability considerably. This shows that the government’s investment program requires grant financing, with concessional debt financing to be considered in exceptional cases.
format	Report
author	World Bank International Monetary Fund
author_facet	World Bank International Monetary Fund
author_sort	World Bank
title	Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
title_short	Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
title_full	Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
title_fullStr	Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
title_full_unstemmed	Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
title_sort	central african republic - joint world bank-imf debt sustainability analysis
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/756551570788378574/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32581
_version_	1764476847713681408

Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis

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