GLOBAL DEVELOPMENT FINANCE CLASSIfies

Transcription

1 . Appendix 1 Debt Burden Indicators and Country Classifications Country classifications for 1998 GLOBAL DEVELOPMENT FINANCE CLASSIfies indebtedness based on two ratios: the ratio of the present value of total debt service to GNP and the ratio of the present value of total debt service to exports. These ratios cast a country s indebtedness in terms of two important aspects of its potential capacity to service the debt: exports (because they provide foreign exchange to service debt) and GNP (because it is the broadest measure of income generation in an economy). The 138 countries report debt data to the World Bank s Debtor Reporting System (DRS). 1 GNP and export data are from World Bank files, as shown in the Country Tables volume of Global Development Finance. Export figures are earnings from goods and services, including worker remittances. Data on official grants are not included, although they may be a stable source of foreign exchange in some countries. Until two years ago, indebtedness was estimated as the average of the ratios for the last three years. This methodology, however, did not fully capture the debt position of reporting countries. For instance, the resulting classification based on this methodology did not reflect the current position of countries benefiting from debt relief in the past two years. To reflect such instances of permanently reduced debt, Global Development Finance adjusted the classification methodology, which will continue to be used this year. The two indebtedness ratios in Global Development Finance 1999 are calculated as follows: The ratio of the present value of total debt service in 1997 to average GNP in 1995, 1996, and (In cases where a joint debt sustainability analysis has been undertaken in the context of the Heavily Indebted Poor Countries (HIPC) Debt Initiative, countries are classified based on the ratio of the present value of public and publicly guaranteed debt to exports of goods and services, excluding worker remittances.) The ratio of the present value of total debt service in 1997 to average exports (including workers remittances) in 1995, 1996, and If either ratio exceeds a critical value 80 percent for debt service to GNP ratio and 220 percent for the debt service to exports ratio the country is classified as severely indebted. If the critical value is not exceeded but either ratio is three-fifths or more of the critical value (that is, 48 percent for the present value of debt service to GNP and 132 percent for the present value of debt service to exports), the country is classified as moderately indebted. If both ratios are less than three-fifths of the critical value, the country is classified as less indebted. Countries are further classified as lowincome if 1997 GNP per capita was $785 or less and as middle-income if 1997 GNP per capita was more than $785 but less than $9,655. Combining these criteria leads to the identification of severely indebted low-income countries (SILICs), severely indebted middle-income countries (SIMICs), moderately indebted low-income countries (MILICs), moderately indebted middle-income countries (MIMICs), less indebted low-income countries (LILICs), and less indebted middle-income countries (LIMICs; table A1.1). The use of critical values to define the boundaries between indebtedness categories implies that changes in country classifications should be interpreted with caution. If a country has an indicator 99

2 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.1 Income and indebtedness classification criteria Indebtedness classification PV/XGS less than 220 percent PV/XGS less than PV/XGS higher than 220 but higher than 132 percent or 132 percent percent or PV/GNP higher PV/GNP less than 80 percent and PV/GNP less Income classification than 80 percent but higher than 48 percent than 48 percent Low-income: GNP per capita Severely indebted Moderately indebted Less-indebted less than $785 low-income countries low-income countries low-income countries Middle-income: GNP per capita Severely indebted Moderately indebted Less-indebted middlebetween $786 and $9,655 middle-income countries middle-income countries income countries Note: PV/XGS is present value of debt service to exports of goods and services. PV/GNP is present value of debt service to GNP. Source: World Bank. that is close to the critical value, a small change in the indicator may trigger a change in indebtedness classification even if economic fundamentals have not changed significantly. Moreover, these indicators do not represent an exhaustive set of useful indicators of external debt. They may not, for example, adequately capture the debt servicing capacity of countries in which government budget constraints are key to debt service difficulties. Countries (such as the franc zone countries in Africa) that allow the use or free conversion of a foreign currency can face government budget difficulties that are related to servicing external public debt, but that are not necessarily reflected in balance of payments data. In other countries, the servicing of domestic public debt may be a source of fiscal strain that is not reflected in balance of payments data. Moreover, rising external debt may not necessarily imply payment difficulties, especially if there is a commensurate increase in the country s debt servicing capacity. Thus, these indicators should be used in the broader context of a country-specific analysis of debt sustainability. The discount rates used to calculate present value are interest rates charged by Organisation for Economic Co-operation and Development (OECD) countries for officially supported export credits. They represent, on average, the most favorable terms for fixed-rate nonconcessional debt that countries are able to contract in international loan markets. The rates are specified for 19 currencies, including G-7 currencies British pounds, Canadian dollars, French francs, German marks, Italian lire, Japanese yen, and U.S. dollars. International Bank for Reconstruction and Development (IBRD) currency-pool loans, International Development Association (IDA) credits, and International Monetary Fund (IMF) loans are discounted at the Special Drawing Rights (SDR) lending rate. For debt denominated in other currencies, discount rates are the average of interest rates on export credits charged by other OECD countries. In present value calculations, debt service on fixed-rate loans is determined and each payment discounted to compute its present value. For variablerate loans, for which the future debt service payment cannot be precisely determined, debt service is calculated using the rate at the end of 1997 for the base specified for the loan. Classification of low-income countries Applying the present value methodology to data, 32 countries are classified as SILICs, 14 as MILICs, and 12 as LILICs (table A1.2). There is one change from last year in the indebtedness classification of low-income countries: Yemen joined the moderately indebted group, owing to its debt rescheduling. Classification of middle-income countries In the middle-income group, 12 countries are classified as SIMICs, 21 as MIMICs, and 43 as LIMICs. There were seven changes in the indebtedness classification since last year. Mexico left the moderately indebted group and joined the less indebted group because of improvements in the present value of debt-to-exports ratio. 100

3 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.2 Classification of DRS economies Severely indebted Severely indebted Moderately indebted Moderately indebted Less indebted Less indebted low-income middle-income low-income middle-income low-income middle-income Angola Argentina Bangladesh Algeria b Albania c Barbados Burkina Faso Bolivia Benin Belize a Armenia Belarus Burundi Brazil Cambodia Chile Azerbaijan Botswana Cameroon Bulgaria Chad Colombia Bhutan Cape Verde Central African Ecuador Comoros Dominica a Eritrea China c Congo, Dem. Gabon Gambia, The Equatorial Guinea bc Kyrgyz Costa Rica Congo, Guyana c India Georgia Lesotho Croatia Côte d Ivoire Indonesia Kenya Hungary Moldova Czech Ethiopia Jamaica Lao PDR Macedonia, FYR Mongolia Djibouti Ghana Jordan Pakistan Malaysia Nepal Dominican Guinea Peru Senegal Mauritius a Tajikistan Egypt, Arab Guinea-Bissau Syrian Arab Togo Morocco Turkmenistan c El Salvador Haiti Yemen, b Panama Estonia Honduras Zimbabwe Philippines Fiji Madagascar Slovak a Grenada Malawi St. Vincent and the Guatemala Mali Grenadines Iran, Islamic Mauritania Thailand Kazakhstan Mozambique Tunisia Latvia Myanmar Turkey Lebanon Nicaragua Uruguay Lithuania Niger Venezuela Maldives Nigeria Malta Rwanda Mexico b São Tomé and Principe Oman Sierra Leone Papua New Guinea Somalia Paraguay Sudan Poland Tanzania Romania Uganda Russian Federation Vietnam Samoa Zambia Seychelles Solomon South Africa Sri Lanka c St. Kitts and Nevis St. Lucia Swaziland Tonga Trinidad and Tobago Ukraine Uzbekistan Vanuatu Note: Tables A1.2 and A1.3 classify all World Bank member economies and all other economies with populations of more than 30,000. Economies are divided among income groups according to 1997 GNP per capita, calculated using the World Bank Atlas method. Income groups are low-income, $785 or less; lower-middle-income, $786 3,125; upper-middle-income, $3,126 9,655; and high-income, $9,655 or more. The table excludes Bosnia and Herzegovina, the Federal of Yugoslavia (Serbia and Montenegro), Liberia, and Slovenia because of lack of data. a. Countries whose indebtedness has increased. b. Countries whose indebtedness has decreased. c. Countries whose income classification has changed. Source: World Bank Debtor Reporting System. Six countries joined the moderately indebted group: Algeria and Equatorial Guinea are reclassified as moderately indebted because of improvements in the debt-to-exports exports ratio (Algeria) and debt-to-gnp ratio (Equatorial Guinea). However, Belize, Dominica, and Mauritius are reclassified as a result of increases in debt-to-gnp ratios and the Slovak is reclassified as a result of an increase in the debt-to-export ratio. Notes 1. This number includes the of Korea, which is classified as a high-income country by the World Bank. 101

4 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.3 Classification of non-drs economies Severely indebted Severely indebted Moderately indebted Less indebted low-income middle-income middle-income middle-income Afghanistan Cuba Gibraltar Antigua and Barbuda Namibia Iraq Bahrain Saudi Arabia Kiribati Suriname Korea, Dem. Libya Note: Tables A1.2 and A1.3 classify all World Bank member economies and all other economies with populations of more than 30,000. Economies are divided among income groups according to 1996 GNP per capita, calculated using the World Bank Atlas method. Income groups are low-income, $785 or less; lower-middle-income, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,655 or more. Source: World Bank Debtor Reporting System. Table A1.4 Major economic indicators, 1997 (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP Albania ,515 Algeria 30,921 29,344 4,420 2,074 16,225 44,815 Angola 10,160 8, ,308 4,384 Argentina 123, ,661 19,969 7,424 34, ,617 Armenia ,751 Azerbaijan ,154 4,323 Bangladesh 15,125 8, ,663 43,082 Barbados Belarus 1,162 1, ,379 22,334 Belize Benin 1, ,111 Bhutan Bolivia 5,248 3, ,362 7,766 Bosnia and Herzegovina 1, Botswana ,892 Brazil 193, ,211 38,091 11,557 66, ,940 Bulgaria 9,858 9, ,460 9,732 Burkina Faso 1, ,389 Burundi 1, Cambodia 2,129 1, ,045 Cameroon 9,293 7, ,520 8,506 Cape Verde Central African ,003 Chad 1, ,574 Chile 31,440 30,178 4,418 1,561 21,632 74,119 China 146, ,687 18,445 6, , ,059 Colombia 31,777 30,322 4,527 2,011 17,028 91,166 Comoros Congo, Dem. 12,330 11, ,458 5,307 Congo, 5,071 4, ,805 1,821 Costa Rica 3,548 3, ,742 9,320 Côte d Ivoire 15,609 13,003 1, ,657 9,441 Croatia 6,842 6,595 1, ,414 19,453 Czech 21,456 20,622 4,405 1,099 31,274 51,385 Djibouti Dominica Dominican 4,239 3, ,466 14,622 Ecuador 14,918 13,600 1, ,106 17,240 Egypt, Arab 29,849 21,265 1, ,479 76,490 El Salvador 3,282 2, ,980 11,176 Equatorial Guinea Eritrea

5 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.4 Major economic indicators, 1997 (continued) (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP Estonia ,725 4,675 Ethiopia 10,079 8, ,047 6,338 Fiji ,266 2,033 Gabon 4,285 4, ,307 4,479 Gambia, The Georgia 1,446 1, ,250 Ghana 5,982 3, ,712 6,754 Grenada Guatemala 4,086 3, ,667 17,593 Guinea 3,520 2, ,693 Guinea-Bissau Guyana 1, Haiti 1, ,807 Honduras 4,698 3, ,421 4,569 Hungary 24,373 22,984 7,685 1,681 25,914 44,305 India 94,404 76,087 10,832 3,668 53, ,064 Indonesia 136, ,552 19,736 6,727 65, ,686 Iran, Islamic 11,816 11,193 6, , ,560 Jamaica 3,913 3, ,963 4,007 Jordan 8,234 7, ,606 7,031 Kazakhstan 4,278 4, ,700 21,965 Kenya 6,486 4, ,017 10,024 Korea, of 143, ,947 14,548 6, , ,320 Kyrgyz ,170 Lao PDR 2, ,753 Latvia ,048 5,396 Lebanon 5,036 4, ,098 15,342 Lesotho ,272 Liberia 2,012 1, Lithuania 1,541 1, ,307 9,387 Macedonia, FYR 1,543 1, ,369 2,187 Madagascar 4,105 2, ,442 Malawi 2,206 1, ,478 Malaysia 47,228 44,108 7,109 2,833 95,387 93,507 Maldives Mali 2,885 1, ,470 Malta 1, ,154 3,374 Mauritania 2,453 1, ,046 Mauritius 2,472 2, ,591 4,362 Mexico 149, ,685 42,453 10, , ,170 Moldova 1, ,127 1,810 Mongolia Morocco 19,321 17,206 3,082 1,034 11,575 32,498 Mozambique 5,526 3, ,573 Myanmar 5,074 4, ,448 Nepal 2,398 1, ,445 4,934 Nicaragua 5,677 4, ,028 1,858 Niger 1,579 1, ,831 Nigeria 28,455 26,968 1, ,172 37,620 Oman 3,602 3, ,034 Pakistan 29,665 23,360 4,059 1,233 11,242 62,401 Panama 7,715 7,335 1, ,709 8,401 Papua New Guinea 2,273 1, ,490 4,036 Paraguay 2,053 1, ,118 9,877 Peru 30,496 27,816 2,936 1,438 9,500 60,872 Philippines 45,433 43,298 4,541 2,201 49,120 85,657 Poland 39,890 35,867 2,562 1,477 41, ,290 Romania 10,442 9,881 1, ,059 31,724 Russian Federation 125, ,832 6,774 5, , ,531 Rwanda 1, ,850 Samoa Table continues on next page 103

6 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.4 Major economic indicators, 1997 (continued) (millions of U.S. dollars) Country EDT PV TDS INT XGS GNP São Tomé and Principe Senegal 3,425 2, ,620 4,427 Seychelles Sierra Leone 1, Slovak 9,989 9,248 1, ,281 19,340 Solomon Somalia 2,561 2,204 South Africa 25,222 24,006 4,774 1,371 37, ,810 Sri Lanka 7,638 5, ,655 15,035 St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Sudan 16,326 15, ,118 8,951 Swaziland ,257 1,447 Syrian Arab 20,865 18, ,082 16,509 Tajikistan ,020 Tanzania 7,177 5, ,245 7,382 Thailand 93,416 91,302 11,716 5,586 76, ,257 Togo 1, ,444 Tonga Trinidad and Tobago 2,162 2, ,126 5,555 Tunisia 11,323 10,534 1, ,843 18,037 Turkey 91,205 82,271 10,716 3,921 58, ,550 Turkmenistan 1,771 1, ,794 Uganda 3,708 2, ,565 Ukraine 10,901 10,418 1, ,513 49,118 Uruguay 6,652 6, ,803 19,882 Uzbekistan 2,761 2, ,980 24,749 Vanuatu Venezuela 35,542 35,036 8,634 2,312 27,600 85,481 Vietnam 21,629 19, ,623 24,193 Yemen, 3,856 2, ,722 5,029 Yugoslavia, Fed. Rep. (Serbia/Montenegro) 15,107 15, Zambia 6,758 5, ,348 3,661 Zimbabwe 4,961 4, ,116 8,488 Not available. Note: For definition of indicators, see Sources and Definitions section (pages ). Numbers in italics are from debt sustainability analyses undertaken in the context of the Heavily Indebted Poor Countries Debt Initiative. Present value estimates for these countries are for public and publicly guaranteed debt only, and export figures exclude worker remittances. Sources: World Bank Debtor Reporting System and staff estimates. 104

7 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.5 Key indebtedness ratios, 1997 (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Albania Algeria Angola Argentina Armenia Azerbaijan Bangladesh Barbados Belarus Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Bulgaria Burkina Faso Burundi 1, Cambodia Cameroon Cape Verde Central African Chad Chile China Colombia Comoros Congo, Dem Congo, Costa Rica Côte d Ivoire Croatia Czech Djibouti Dominica Dominican Ecuador Egypt, Arab El Salvador Equatorial Guinea Eritrea Estonia Ethiopia 1, Fiji Gabon Gambia, The Georgia Ghana Grenada Guatemala Guinea Guinea-Bissau 2,562 1, Guyana Haiti Honduras Hungary India Indonesia Iran, Islamic Jamaica Table continues on next page 105

8 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.5 Key indebtedness ratios, 1997 (continued) (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Jordan Kazakhstan Kenya Korea, of Kyrgyz Lao PDR Latvia Lebanon Lesotho Liberia Lithuania Macedonia, FYR Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique 1, Myanmar Nepal Nicaragua Niger Nigeria Oman Pakistan Panama Papua New Guinea Paraguay Peru Philippines Poland Romania Russian Federation Rwanda Samoa São Tomé and Principe 2,294 1, Senegal Seychelles Sierra Leone Slovak Solomon Somalia South Africa Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Sudan 1,530 1, Swaziland Syrian Arab Tajikistan Tanzania Thailand Togo Tonga

9 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.5 Key indebtedness ratios, 1997 (continued) (percent) Country EDT/XGS PV/XGS EDT/GNP PV/GNP TDS/XGS INT/XGS Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine Uruguay Uzbekistan Vanuatu Venezuela Vietnam Yemen, Yugoslavia, Fed. Rep. (Serbia/Montenegro) Zambia Zimbabwe Not available. Note: For definition of indicators, see Sources and Definitions section (pages ). Numbers in italics are from debt sustainability analyses undertaken in the context of the Heavily Indebted Poor Countries Debt Initiative. Present value estimates for these countries are for public and publicly guaranteed debt only, and export figures exclude worker remittances. Sources: World Bank Debtor Reporting System and staff estimates. 107

10 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.6 Classification of economies by income and region, 1999 Sub-Saharan Africa Asia Europe and Central Asia Middle East and North Africa East and Eastern Income Southern East Asia Europe and Rest of Middle North group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe East Africa Americas Lowincome Angola Burundi Comoros Congo, Dem.. a Eritrea Ethiopia Kenya Lesotho Madagascar Malawi Mozambique Rwanda Somalia Sudan Tanzania Uganda Zambia Zimbabwe Benin Burkina Faso Cameroon Central African Chad Congo, Rep. of Côte d Ivoire Gambia, The Ghana Guinea Guinea-Bissau Liberia Mali Mauritania Niger Nigeria São Tomé and Principe Senegal Sierra Leone Togo Cambodia Lao PDR Mongolia Myanmar Vietnam Afghanistan Bangladesh Bhutan India Nepal Pakistan Albania Armenia Azerbaijan Bosnia and Herzegovina Kyrgyz Moldova Tajikistan Turkmenistan Yemen, Rep. of Haiti Honduras Nicaragua Middleincome Lower Djibouti Namibia Swaziland Cape Verde Equatorial Guinea China Fiji Indonesia Kiribati Korea, Dem. Marshall Micronesia, Fed. Sts. Papua New Guinea Philippines Samoa Solomon Thailand Tonga Vanuatu Maldives Sri Lanka Belarus Bulgaria Georgia Kazakhstan Latvia Lithuania Macedonia, FYR b Romania Russian Federation Ukraine Uzbekistan Yugoslavia, Fed. Rep. of c Iran, Islamic Iraq Jordan Syrian Arab West Bank and Gaza Algeria Egypt, Arab Morocco Tunisia Belize Bolivia Colombia Costa Rica Cuba Dominica Dominican Ecuador El Salvador Guatemala Guyana Jamaica Panama Paraguay Peru St. Vincent and the Grenadines Suriname Upper Botswana Mauritius Mayotte Seychelles South Africa Gabon American Samoa Malaysia Palau Croatia Czech Estonia Hungary Slovak Isle of Man Turkey Bahrain Lebanon Oman Saudi Arabia Libya Malta Antigua and Barbuda Argentina Barbados Brazil Chile Grenada Guadeloupe Mexico Puerto Rico St. Kitts and Nevis St. Lucia Trinidad and Tobago Uruguay Venezuela Subtotal:

11 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.6 Classification of economies by income and region, 1999 (continued) Sub-Saharan Africa Asia Europe and Central Asia Middle East and North Africa East and Eastern Income Southern East Asia Europe and Rest of Middle North group Subgroup Africa West Africa and Pacific South Asia Central Asia Europe East Africa Americas Highincome OECD Australia Japan Korea, New Zealand Austria Belgium Denmark Finland France Germany Greece Iceland Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Canada United States Non- OECD Reunion Brunei French Polynesia Guam Hong Kong, China d Macao New Caledonia Northern Mariana Singapore OAE e Slovenia Andorra Channel Cyprus Faeroe Greenland Liechtenstein Monaco Israel Kuwait Qatar United Arab Emirates Aruba Bahamas, The Bermuda Cayman French Guiana Martinique Netherlands Antilles Virgin (U.S.) Total: Note: This table classifies all World Bank member economies, and all other economies with populations of more than 30,000. For operational and analytical purposes, the World Bank s main criterion for classifying economies is gross national product (GNP) per capita. Every economy is classified as low-income, middle-income (subdivided into lower-middle and upper-middle), or high-income. Other analytical groups, based on regions and external debt, are also used. Classification by income does not necessarily reflect development status, although low-income and middle-income economies are sometimes referred to as developing economies. The use of the term is convenient; it is not intended to imply that all economies in the group are experiencing similar development or that other economies have reached a preferred or final stage of development. Economies are divided according to 1997 GNP per capita, calculated using the World Bank Atlas method. Income groups are low income, $785 or less; lower-middleincome, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,656 or more. a. Formerly Zaire. b. Former Yugoslav of Macedonia. c. Federal of Yugoslavia (Serbia/Montenegro). d. On 1 July 1997 China resumed sovereignty over Hong Kong. e. Other Asian economies Taiwan, China. Source: World Bank data. 109

12 G L O B A L D E V E L O P M E N T F I N A N C E Table A1.7 Classification of economies by income group and indebtedness category, 1999 Income group Subgroup Severely indebted Moderately indebted Less indebted Not classified by indebtedness Lowincome Afghanistan Angola Bosnia and Herzegovina Burkina Faso Burundi Cameroon Central African Congo, Dem. a Congo, Côte d Ivoire Ethiopia Ghana Guinea Guinea-Bissau Haiti Honduras Madagascar Malawi Mali Mauritania Mozambique Myanmar Nicaragua Niger Nigeria Rwanda São Tomé and Principe Sierra Leone Somalia Sudan Tanzania Uganda Vietnam Zambia Bangladesh Benin Cambodia Chad Comoros Gambia, The India Kenya Lao PDR Pakistan Senegal Togo Yemen, Zimbabwe Albania Armenia Azerbaijan Bhutan Eritrea Kyrgyz Lesotho Moldova Mongolia Nepal Tajikistan Turkmenistan Liberia Middleincome Lower Bolivia Bulgaria Cuba Ecuador Guyana Indonesia Iraq Jamaica Jordan Peru Syrian Arab Algeria Belize Colombia Dominica Equatorial Guinea Georgia Macedonia FYRb Morocco Panama Philippines St. Vincent and the Grenadines Thailand Tunisia Belarus Cape Verde China Costa Rica Djibouti Dominican Egypt, Arab El Salvador Fiji Guatemala Iran, Islamic Kazakhstan Kiribati Korea, Dem. Latvia Lithuania Maldives Namibia Papua New Guinea Paraguay Romania Russian Federation Samoa Solomon Sri Lanka Suriname Swaziland Tonga Ukraine Uzbekistan Vanuatu Yugoslavia, Fed. c Marshall Micronesia, Fed. Sts. West Bank and Gaza Upper Argentina Brazil Gabon Chile Hungary Malaysia Mauritius Slovak Turkey Uruguay Venezuela Antigua and Barbuda Bahrain Barbados Botswana Croatia Czech Estonia Grenada Lebanon Libya Malta Mexico Oman Poland Saudi Arabia Seychelles South Africa St. Kitts and Nevis St. Lucia Trinidad and Tobago American Samoa Guadeloupe Isle of Man Mayotte Palau Puerto Rico 110

13 D E B T B U R D E N I N D I C A T O R S A N D C O U N T R Y C L A S S I F I C A T I O N S Table A1.7 Classification of economies by income group and indebtedness category, 1999 (continued) Income group Subgroup Severely indebted Moderately indebted Less indebted Not classified by indebtedness Highincome OECD Australia Austria Belgium Canada Denmark Finland France Germany Greece Iceland Ireland Italy Japan Korea, Luxembourg Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom United States Non- OECD Andorra Aruba Bahamas, The Bermuda Brunei Cayman Channel Cyprus Faeroe French Guiana French Polynesia Guam Greenland Hong Kong, China d Israel Kuwait Liechtenstein Macao Martinique Monaco Netherlands Antilles New Caledonia Northern Mariana Qatar Reunion Singapore Slovenia United Arab Emirates Virgin (U.S.) OAE e Total: Note: This table classifies all world Bank member economies, plus all other economies with populations of more than 30,000. Income group: Economies are divided according to 1997 GNP per capita, calculated using the World Bank Atlas method. The groups are: low-income, $785 or less; lower-middle-income, $786 $3,125; upper-middle-income, $3,126 $9,655; and high-income, $9,656 or more. Indebtedness: Standard World Bank definitions of severe and moderate indebtedness are used to classify economies in this table. Severely indebted means either that the present value of debt service to GNP exceeds 80 percent or that the present value of debt service to exports exceeds 220 percent. Moderately indebted means either of the two key ratios exceeds 60 percent of, but does not reach, the critical levels. Present value calculation is not possible for economies that do not report detailed statistics to the World Bank Debtor Reporting System (DRS). Instead, the following methodology is used to classify non-drs economies. Severely indebted means three of four key ratios (averaged over ) are above critical levels: debt to GNP (50 percent); debt to exports (275 percent); debt service to exports (30 percent); and interest to exports (20 percent). Moderately indebted means three of the four key ratios exceed 60 percent of, but do not reach, the critical levels. All other classified low- and middle-income economies are listed as less indebted. a. Formerly Zaire. b. Former Yugoslav of Macedonia. c. Federal of Yugoslavia (Serbia/Montenegro). d. On 1 July 1997 China resumed sovereignty over Hong Kong. e. Other Asian economies Taiwan, China. Source: World Bank data. 111