Dominica : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Dominica continues to be at high risk of debt distress. However, hurricane Maria in September 2017 caused severe social hardship and deterioration of fiscal and external balances, weakening sustainability. In addition, Dominica’s debt carrying capa...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/659461539630532332/Dominica-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30910 |
| Summary: | Dominica continues to be at high risk of
debt distress. However, hurricane Maria in September 2017
caused severe social hardship and deterioration of fiscal
and external balances, weakening sustainability. In
addition, Dominica’s debt carrying capacity as measured by
the three-year CPIA average declined. Thus, setting public
and publicly guaranteed total and external debt on a
declining path would require prudent and efficient fiscal
policies that safeguard fiscal space for social relief and
reconstruction investment. A fiscal consolidation plan is
needed after recovery takes hold to sustain reconstruction
investment. Donor grant mobilization is key to minimize the
debt burden. Main risks to the debt sustainability outlook
include sudden stop in citizenship-by-investment (CBI)
program revenues, financial instability from weakened
balance sheets, and recurrent natural disasters. |
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