Chad : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Following the restructuring of the debt to Glencore and the progress made in clearing external arrears, debt vulnerabilities declined significantly, and the external risk rating has been upgraded to high. The debt sustainability analysis (DSA) show...
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| Language: | English |
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Washington, DC: World Bank
2018
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| Online Access: | http://documents.worldbank.org/curated/en/189101537332855380/Chad-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30522 |
| Summary: | Following the restructuring of the debt
to Glencore and the progress made in clearing external
arrears, debt vulnerabilities declined significantly, and
the external risk rating has been upgraded to high. The debt
sustainability analysis (DSA) shows that all debt burden
indicators, except the debt-service-to-revenue ratio which
has minor and temporary breaches, are below their respective
thresholds in the baseline from 2018 onwards. The
debt-service-to-revenue ratio, falls below the threshold in
2019 and remains so throughout the projection period, except
for minor breaches in 2020 and 2021. Overall, total public
debt vulnerabilities are elevated although the present value
(PV) of the public debt-to- gross domestic product (GDP)
ratio remains on a downward trajectory. The fixed primary
balance scenario, which keeps the primary deficit-to-GDP
ratio unchanged from 2017, shows the debt ratio declining at
a slower pace throughout the forecast period, further
highlighting the need to adhere to the prudent fiscal policy
framework underpinning the International Monetary Fund
(IMF)-supported program. Adoption and implementation of an
appropriate debt management strategy, while making progress
in economic diversification will further reduce vulnerabilities. |
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