Burkina Faso : Joint Bank-Fund Debt Sustainability Analysis 2018 Update
This joint World Bank/IMF Debt Sustainability Analysis (DSA) has been prepared in the context of the 2018 Article IV consultation and first review of the three-year program supported by the IMF’s Extended Credit Facility (ECF). It is based on end-2...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/304711549919036977/Burkina-Faso-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/31300 |
| Summary: | This joint World Bank/IMF Debt
Sustainability Analysis (DSA) has been prepared in the
context of the 2018 Article IV consultation and first review
of the three-year program supported by the IMF’s Extended
Credit Facility (ECF). It is based on end-2017 debt data and
the latest methodology underpinning the LIC DSF, which
triggered an improvement in debt indicator thresholds.
External risk of debt distress in Burkina Faso remains
moderate. All external debt indicators remain below the
relevant indicative thresholds under the baseline scenario.
In line with the Staff Report, the baseline scenario is
anchored on an overall fiscal deficit of 3 percent of GDP
from 2019. In a customized scenario meant to illustrate
fiscal and external risks, two thresholds are breached. The
overall public debt does not breach the relevant benchmark
in the baseline and Burkina Faso is assessed as having a
moderate risk of public debt distress, as the external debt
risk rating is moderate. Burkina Faso would need to: (i)
maintain a sound macro-fiscal framework; (ii) implement
structural reforms to diversify its export base; and (iii)
limit non-concessional borrowing to prevent a deterioration
of its debt sustainability outlook. |
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