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Supplement to 2018 Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries
This Supplement provides additional guidance to IMF and World Bank staff on the implementation of the Bank-Fund Debt Sustainability Framework for Low Income Countries (LIC-DSF) approved in 2017 by the IMF and World Bank Boards. It complements the 2018 Bank-Fund Guidance Note on the LIC-DSF. Since the publication of the 2018 Guidance Note, several issues have increased in significance, requiring more tailored guidance on the implementation of the LIC-DSF to address these issues, including:
· Greater prominence of risks from climate change.
· Further increase in borrowing on commercial terms and in domestic markets.
· Increased number and complexity of debt restructurings.
This Supplement to the 2018 Guidance Note on the LIC-DSF provides further guidance on how to address these issues within the current framework. All aspects of the 2018 LIC-DSF Guidance Note remain in effect, except as modified in this Supplement.
· Greater prominence of risks from climate change.
· Further increase in borrowing on commercial terms and in domestic markets.
· Increased number and complexity of debt restructurings.
This Supplement to the 2018 Guidance Note on the LIC-DSF provides further guidance on how to address these issues within the current framework. All aspects of the 2018 LIC-DSF Guidance Note remain in effect, except as modified in this Supplement.
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