Debt Sustainability Analysis - virtual training

Training objectives 

The main objective of this training is to provide introductory training on debt management and in-depth technical training on the methodology of the IMF/World Bank Debt Sustainability Framework (DSF) for low-income and middle-income developing countries (LICs/MICs).

The EU supports debt management capacities in partner countries – directly or indirectly through the IMF, the WB or UNCTAD. The EU is also supportive of international efforts to address debt vulnerabilities in countries, and in particular the Common Framework for Debt Treatment in LICs. Contributing to debt sustainability is a policy objective for the EU, particularly in the context of the Global Gateway Investment Agenda when backing investment projects by Development Finance Institutions (DFIs) under the European Fund for Sustainable Development+ (EFSD+). Debt sustainability is also an essential factor of macroeconomic stability, a core dimension of a conducive investment climate for the private sector. Finally, debt sustainability analysis is required as part of the macroeconomic assessment when providing budget support.

Participants must have followed the Macroeconomics – Basics course or have equivalent and proven background/experience in macroeconomics otherwise. The course will allow the participants to go deeper on the debt-related points made during the Macro I – Basics course. It is also a very useful complement to the Macroeconomics – Advanced course.

The training will:

• introduce the main principles of debt sustainability and allow participants to master relevant terminology
• provide comprehensive overview of debt sustainability analysis (DSA) and underpinnings of public debt dynamics
• help participants understand implications of unsustainable debt and defaulting/restructuring debt
• enable participants grasp the main theoretical concepts needed to understand debt dynamics used in the LIC/MIC IMF/WB DSF/DSA and specific features
• teach participants how read and interpret outputs presented in IMF/WB report including through country case studies

Content 

The training will cover:

• Debt Sustainability
• Debt Restructuring
• Debt Sustainability for Low-Income Countries

IMF/WB Debt Sustainability Framework

Training materials : The presentation is now available below.