The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework : Approach Paper
Interest is high on the World Bank’s role in and use of the Low-Income Country Debt Sustainability Framework (LIC-DSF) in light of the sharp rise in debt stress among low-income countries and a changing global risk landscape in the years leading up...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099416406072238389/IDU01e801f980cfb804b700b5650e94b2e5102d9 http://hdl.handle.net/10986/37672 |
| Summary: | Interest is high on the World Bank’s
role in and use of the Low-Income Country Debt
Sustainability Framework (LIC-DSF) in light of the sharp
rise in debt stress among low-income countries and a
changing global risk landscape in the years leading up to
and resulting from the coronavirus pandemic (COVID-19).
Since 2015, the number of IDA-eligible countries at high
risk of or in debt distress has more than doubled. As the
key instrument to assess the debt sustainability of IDA
eligible countries, the LIC-DSF is intended to guide the
World Bank’s advice and support to these countries. This
evaluation seeks to assess how the World Bank contributes to
the LIC-DSF, how it uses LIC-DSF output in various corporate
and country-level decisions, and how it can better leverage
the LIC-DSF to address debt vulnerabilities in LICs. In
doing so, it will seek to identify opportunities for the
World Bank to strengthen its role in the preparation and use
of the LIC-DSF in a changing global context and to highlight
potentially important questions that may need to be
addressed in the upcoming joint review, including the extent
to which the LIC-DSF meets IDA’s needs in serving its
clients. Recommendations from this evaluation will focus on
aspects of the LIC-DSF that are within the World Bank’s
ability to change or influence. |
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