IMF to update debt sustainability framework
Reforms aim to improve framework’s predictive capacity and transparency, IMF says
The International Monetary Fund will update its debt sustainability framework for market access countries, it said on February 4.
The IMF said it uses the framework for both surveillance and lending, to identify countries’ vulnerability to sovereign stress. It helps determine if sovereign stress can be resolved via a combination of financing and economic reforms, or if a country needs debt restructuring.
The IMF statement said that it would replace its current approach with a new methodology
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