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External Debt Sustainability in HIPC Completion Point Countries: An Update

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  • Jie Yang
  • Dan Nyberg

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.

Suggested Citation

  • Jie Yang & Dan Nyberg, 2009. "External Debt Sustainability in HIPC Completion Point Countries: An Update," IMF Working Papers 2009/128, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/128
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    References listed on IDEAS

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    Cited by:

    1. Ms. Sandra Marcelino & Ms. Ivetta Hakobyan, 2014. "Does Lower Debt Buy Higher Growth? The Impact of Debt Relief Initiatives on Growth," IMF Working Papers 2014/230, International Monetary Fund.

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