External Debt Sustainability in Hipc Completion Point Countries: An Update

21 Pages Posted: 30 Jun 2009

See all articles by Jie Yang

Jie Yang

International Monetary Fund (IMF)

Dan Nyberg

International Monetary Fund (IMF)

Date Written: June 2009

Abstract

Despite substantial debt relief to HIPC Initiative completion point countries, long-term debt sustainability remains a challenge. This paper examines a number of structural factors affecting external debt sustainability. It shows that in HIPC completion point countries (i) the export base broadly remains narrow; (ii) fiscal revenue mobilization lags behind in some countries; and (iii) policy and institutional frameworks are still relatively weak. Achieving and maintaining longterm debt sustainability in completion point countries will require continued structural reforms, timely donor support, and close monitoring of new non-concessional borrowing.

Keywords: Cross country analysis, Debt sustainability, Export diversification, External debt, Fiscal policy, Fiscal reforms, Governance, HIPC Initiative, Low-income developing countries, Revenue mobilization

Suggested Citation

Yang, Jie and Nyberg, Dan, External Debt Sustainability in Hipc Completion Point Countries: An Update (June 2009). IMF Working Paper No. 09/128, Available at SSRN: https://ssrn.com/abstract=1426447

Jie Yang

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Dan Nyberg

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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