IMFx: Debt Sustainability Framework for Low Income Countries

by The International Monetary Fund

Low-Income Country Debt Sustainability Framework

An Intermediate Course by IMF and World Bank

Course Description

Welcome to the "Low-Income Country Debt Sustainability Framework" course, an essential program developed by the International Monetary Fund (IMF) and the World Bank (WB). This intermediate-level course is designed to provide you with a comprehensive understanding of the LIC DSF, a crucial tool for helping low-income countries achieve their development goals while minimizing the risk of debt distress.

In this one-module course, you'll embark on an enlightening journey through the intricacies of the LIC DSF. You'll gain the skills to interpret LIC DSF outputs presented in World Bank and IMF reports, giving you valuable insights into global economic dynamics. The course takes you step-by-step through the application of the LIC DSF, covering everything from data requirements to the final risk rating process.

What You'll Learn

Identify and understand the data requirements for using the LIC DSF template
Master the steps involved in producing LIC DSF risk ratings
Comprehend and apply the LIC DSF realism tools
Interpret and analyze LIC DSF stress test scenarios
Understand how the LIC DSF computes thresholds for debt-burden indicators
Interpret debt sustainability analysis outputs for low-income countries as presented in World Bank and IMF reports
Apply judgment in arriving at a final risk rating

Prerequisites

While this is an intermediate-level course, there are no specific prerequisites listed. However, a basic understanding of economics and finance would be beneficial.

Course Content

Introduction to the LIC DSF and its importance
Data requirements and collection for the LIC DSF template
Understanding and applying "realism tools" for assessing macroeconomic projection plausibility
Computation of a country's debt-carrying capacity
Determination of thresholds for debt-burden indicators
Analysis of baseline and stress test scenarios
Interpretation of debt-burden indicator breaches
Application of judgment in final risk rating determination

Who This Course Is For

Economics and finance professionals
Government officials involved in economic policy-making
International development practitioners
Students of economics, finance, and international relations
Anyone interested in understanding debt sustainability in low-income countries

Real-World Applications

The skills acquired in this course have significant real-world applications. Learners will be able to:

Contribute to economic policy discussions and decisions in low-income countries
Analyze and interpret World Bank and IMF reports more effectively
Assist in developing strategies for sustainable economic growth in developing nations
Provide informed advice on debt management and fiscal policy
Enhance their career prospects in international finance, development economics, and related fields