IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/10648.html
   My bibliography  Save this paper

Analyzing Debt Sustainability: Concepts and Tools Applied for Guinea, Rwanda,and Senegal

Author

Listed:
  • Gunter, Bernhard
  • Wodon, Quentin

Abstract

A sustainable debt is a precondition for sustainable development. Yet the analysis of a country’s debt sustainability is a complex task given issues related to (1) establishing the actual debt outstanding and future debt-service obligations; (2) defining appropriate sustainability indicators; and (3) projecting future macroeconomic variables like gross domestic product, exports, interest rates, inflation rates, and exchange rates. These projections are crucial because debt sustainability analysis is necessarily forward-looking and highly sensitive to changes in these macroeconomic variables. This paper provides a case study of debt sustainability analysis in three African countries to illustrate the key concepts and complexities involved in such analysis. We begin with an overview of the main debt sustainability indicators as they typically are used in practice. We then provide a brief historical review of previous and current debt relief initiatives and illustrate how they have been applied in each of the three countries. The paper then presents the debt sustainability analyses using a recently developed simulation tool (SimSIP Debt).

Suggested Citation

  • Gunter, Bernhard & Wodon, Quentin, 2008. "Analyzing Debt Sustainability: Concepts and Tools Applied for Guinea, Rwanda,and Senegal," MPRA Paper 10648, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10648
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/10648/1/MPRA_paper_10648.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernhard G. Gunter, 2001. "Does the HIPC Initiative Achieve its Goal of Debt Sustainability?," WIDER Working Paper Series DP2001-100, World Institute for Development Economic Research (UNU-WIDER).
    2. International Monetary Fund, 2002. "Guinea; Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility—Staff Report and Press Release on the Executive Board Discussion," IMF Staff Country Reports 2002/226, International Monetary Fund.
    3. Bernhard G. Gunter, 2002. "What’s Wrong with the HIPC Initiative and What’s Next?," Development Policy Review, Overseas Development Institute, vol. 20(1), pages 5-24, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gunter, Bernhard & Wodon, Quentin, 2008. "Analyzing Debt Sustainability: An Application of SimSIP Debt for Paraguay," MPRA Paper 11076, University Library of Munich, Germany.
    2. Bernhard G. Gunter & A. F. M. Ataur Rahman, 2008. "Analyzing Bangladesh’s Debt Sustainability Using SimSIP Debt," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 2, Bangladesh Development Research Center (BDRC).
    3. Jonathan Eaton, 2002. "The HIPC Intitiative : The Goals, Additionality, Eligibility, and Debt Sustainability," World Bank Publications - Books, The World Bank Group, number 19061.
    4. Cassimon, Denis & Moreno-Dodson, Blanca & Wodon, Quentin, 2008. "Debt Sustainability for Low-Income Countries: A Review of Standard and Alternative Concepts," MPRA Paper 11077, University Library of Munich, Germany.
    5. Olav Bjerkholt, 2004. "New approaches to debt relief and debt sustainability in LDCs," CDP Background Papers 005, United Nations, Department of Economics and Social Affairs.
    6. Sanford, Jonathan E., 2004. "IDA Grants and HIPC Debt Cancellation: Their Effectiveness and Impact on IDA Resources," World Development, Elsevier, vol. 32(9), pages 1579-1607, September.
    7. Heylen, Fanny, 2010. "Analyzing the poverty impact of the enhanced Heavily Indebted Poor Countries (HIPC) initiative in Bolivia," Documentos de trabajo 1/2010, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    8. Bernhard G. Gunter, 2001. "Does the HIPC Initiative Achieve its Goal of Debt Sustainability?," WIDER Working Paper Series DP2001-100, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Debt sustainability; macroeconomic projections; debt relief;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:10648. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.