The international bank replaced its debt sustainability framework.
The Fund released a new tool that provides operational guidance for the use of the SRDSF which replaces the Debt Sustainability Framework. The SRDSF introduces improvements in organization, methodology, transparency, and communication when analyzing public debt issues in countries that mainly finance themselves with market-based debt.
The SRDSF provides two outputs: a sovereign risk assessment and a debt sustainability assessment.
These assessments aim to capture vulnerability to sovereign stress events, risks that debt could become unsustainable, and prospects for stabilizing the debt trajectory in the baseline scenario.
After the Framework’s phased adoption beginning in June 2022, it will become the Fund’s principal tool for assessing public debt sustainability.
