Review of The Bank-Fund Debt Sustainability Framework for Low-Income Countries - Proposed Reforms

International Monetary Fund

No 2026/034, IMF Policy Papers from International Monetary Fund

Abstract: This paper proposes a set of reforms to ensure that the IMF–World Bank Debt Sustainability Framework for Low-Income Countries (LIC-DSF) remains fit for purpose and future-proof in the face of heightened debt vulnerabilities, greater heterogeneity across LICs, and analytical advances since the 2017 Review. The proposals aim to enhance the framework’s predictive power, transparency, and policy relevance, while preserving continuity, tractability, and its role as an early-warning tool for debt stress and unsustainable debt.

Pages: 205
Date: 2026-09-21
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