Africa s rising debt. Session 1. Debt dynamics in Africa s complex financing landscape. 14:00 15:30

Similar documents
DEBT VULNERABILITIES IN EMERGING AND LOW-INCOME ECONOMIES*

Debt Sustainability Analysis (Cambodia) 2018 Asian Regional Public Debt Management Forum June 2018, Samui, Thailand

I. BACKGROUND AND CONTEXT

HIGHLIGHTS AND WORK AGENDA

Nicaragua: Joint Bank-Fund Debt Sustainability Analysis 1,2

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS DEBT SUSTAINABILITY ANALYSIS Directorate of Debt Management and Economic Cooperation

Linking Fiscal and Debt Management Policies The Role of Debt Sustainability Analysis. Seán Nolan. International Monetary Fund December 3, 2014

Burkina Faso: Joint Bank-Fund Debt Sustainability Analysis

CENTRAL AFRICAN REPUBLIC

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND MALI. Joint Bank-Fund Debt Sustainability Analysis Update

Uganda: Joint Bank-Fund Debt Sustainability Analysis

Debt Sustainability Framework for Low-Income Countries (LICs)

CÔTE D'IVOIRE ANALYSIS UPDATE. June 2, Prepared by the International Monetary Fund and the International Development Association

GUIDANCE NOTE ON THE BANK-FUND DEBT SUSTAINABILITY FRAMEWORK FOR LOW INCOME COUNTRIES

Conditionality and Policy Based Lending --Trends

March 2007 KYRGYZ REPUBLIC: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS

Using Balance Sheets for Fiscal Analysis and Policymaking Amanda Sayegh Fiscal Affairs Department International Monetary Fund

JOINT IMF/WORLD BANK DEBT SUSTAINABILITY

INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL MONETARY FUND SUDAN. Joint World Bank/IMF 2009 Debt Sustainability Analysis

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETRY FUND CAMBODIA. Joint Bank-Fund Debt Sustainability Analysis 1

Part 3: Debt Sustainability Framework for Low- Income Countries

Debt Statistics and Management: Issues at the National Level

The Gambia: Joint Bank-Fund Debt Sustainability Analysis

INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION SIERRA LEONE. Joint IMF/World Bank Debt Sustainability Analysis 2010

Cape Verde: Joint Bank-Fund Debt Sustainability Analysis 1 2

FOURTH REVIEW UNDER THE POLICY SUPPORT INSTRUMENT DEBT SUSTAINABILITY ANALYSIS

Meeting of Multilateral Development Banks on Debt Issues. Chairman s Summary

Draft UN resolution on external debt sustainability and development

Low-Income Countries (LICs): Overview

WORLD ECONOMIC OUTLOOK January 2018 Research Department, International Monetary Fund

STAFF REPORT FOR THE 2014 ARTICLE IV CONSULTATION AND SECOND REVIEW UNDER THE POLICY SUPPORT INSTRUMENT DEBT SUSTAINABILITY ANALYSIS

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND KENYA. Joint IMF/World Bank Debt Sustainability Analysis

INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL MONETARY FUND RWANDA. Joint World Bank/IMF Debt Sustainability Analysis

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND THE GAMBIA. Joint Bank-Fund Debt Sustainability Analysis

Debt Sustainability Framework Debt Sustainability Analysis (Cambodia) DMF Stakeholders Forum June 3-4, 2015, Manila, Philippines

Malawi: Joint Bank-Fund Debt Sustainability Analysis Based on Low-Income County Framework 1

LAO PEOPLE'S DEMOCRATIC REPUBLIC

INTERNATIONAL MONETARY FUND

INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION REPUBLIC OF MODOVA

International Monetary Fund Washington, D.C.

STAFF REPORT FOR THE 2016 ARTICLE IV CONSULTATION DEBT SUSTAINABILITY ANALYSIS

STAFF REPORT FOR THE 2017 ARTICLE IV CONSULTATION DEBT SUSTAINABILITY ANALYSIS

Spillovers from Dollar Appreciation

Formulation & Implementation of Debt Strategy in Changing Borrowing Environment

INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL MONETARY FUND RWANDA. Joint IMF/World Bank Debt Sustainability Analysis

G20 International Financial Architecture Working Group 2016 Final Report

REQUEST FOR A THREE-YEAR POLICY SUPPORT

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND NIGERIA

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND REPUBLIC OF CONGO. Joint Bank-Fund Debt Sustainability Analysis 2013 Update

ISLAMIC REPUBLIC OF AFGHANISTAN

Risk of external debt distress: Augmented by significant risks stemming from domestic public debt?

Presentation at the International Research Conference Monetary Policy in Developing Countries Practice and Challenges July 19 20, 2012 Serena Hotel

INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION SENEGAL. Joint IMF/IDA Debt Sustainability Analysis

STAFF REPORT FOR THE 2017 ARTICLE IV CONSULTATION DEBT SUSTAINABILITY ANALYSIS

Public Debt Management

REQUEST FOR A THREE-YEAR ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY DEBT SUSTAINABILITY ANALYSIS

(January 2016). The fiscal year for Rwanda is from July June; however, this DSA is prepared on a calendar

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND CHAD

* The three-year average of the CPIA index of Congo in is According to the LIC DSF, Congo is classified as a weak performer.

INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL MONETARY FUND ISLAMIC REPUBLIC OF MAURITANIA

CÔTE D'IVOIRE. Approved by Dominique Desruelle and Daria Zakharova (IMF); and Paloma Anos-Casero (IDA) November 21, 2017

INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION DEMOCRATIC REPUBLIC OF CONGO

Joint Bank-Fund Debt Sustainability Analysis 2018 Update

REPUBLIC OF THE MARSHALL ISLANDS

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND SENEGAL. Joint Bank/Fund Debt Sustainability Analysis

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND. Uganda Debt Sustainability Analysis 2013 Update

Future of the HIPC Initiative

REPUBLIC OF SRPSKA DEBT MANAGEMENT STRATEGY FOR THE PERIOD

measured by a three-year average of the World Banks Country Policy and Institutional Assessment (CPIA)

REPUBLIC OF SRPSKA DEBT MANAGEMENT STRATEGY FOR THE PERIOD

THE REPUBLIC OF UGANDA DEBT SUSTAINABILITY ANALYSIS REPORT 2016/17

Georgia: Joint Bank-Fund Debt Sustainability Analysis 1

STAFF REPORT FOR THE 2016 ARTICLE IV CONSULTATION DEBT SUSTAINABILITY ANALYSIS

Joint Bank-Fund Debt Sustainability Analysis 2018 Update

January 2008 NIGER: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS

CAMEROON. Approved By. Prepared by the staffs of the International Monetary Fund and the International Development Association.

ISLAMIC REPUBLIC OF AFGHANISTAN

May 2006 SIERRA LEONE: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS

Lessons learnt from 20 years of debt relief

International M onetary Monetary Fund Macroec Macr oec nomic D evelopmen Deve lopmen s t a nd and Pr ospects

DEMOCRATIC REPUBLIC OF TIMOR-LESTE

REQUEST FOR A THREE-YEAR ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY DEBT SUSTAINABILITY ANALYSIS

The Paris Club and International Debt Relief

Public Debt Sustainability Analysis for Market Access Countries (MACs): The IMF s Framework. S. Ali Abbas International Monetary Fund

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND REVIEW OF THE DEBT SUSTAINABILITY FRAMEWORK

Zimbabwe s Debt and Related Issues MDB Meeting, July 6, Praveen Kumar Lead Economist, AFTP1, World Bank

Technical Assistance (TA) on Public Debt Management

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND BENIN JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND BURUNDI. Joint Bank/Fund Debt Sustainability Analysis 2010

DEBT SUSTAINABILITY FRAMEWORK FOR LOW INCOME COUNTRIES: POLICY AND RESOURCE IMPLICATIONS

STAFF REPORT FOR THE 2015 ARTICLE IV CONSULTATION DEBT SUSTAINABILITY ANALYSIS UPDATE

Policy Options for Dealing with the Impact of the Financial Crisis on the External Debt of Developing Countries

MALAWI. Approved By. June 7, 2017

THE IMF: INSTRUMENTS AND STRATEGIES. Lecture 5 LIUC 2009 ORIGINS OF THE IMF

STRENGTHENING DEBT MANAGEMENT IN LOW INCOME COUNTRIES LESSONS FROM TANZANIA

INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL MONETARY FUND KENYA. Joint Bank-Fund Debt Sustainability Analysis - Update

OFFICIAL DOCUMENTS. Republic of Seychelles Ministry of Finance, Trade and the Blue Economy. Public Disclosure Authorized. Public Disclosure Authorized

Debt Burden and Fiscal Sustainability in the Caribbean Region IMF- Presentation

Managing Public Debt To Lower Risks

THE UNITED REPUBLIC OF TANZANIA MINISTRY OF FINANCE AND PLANNING

Transcription:

Africa s rising debt Session 1. Debt dynamics in Africa s complex financing landscape #AfricasRisingDebt @ODIdev 14:00 15:30

ODI Seminar: Africa s Rising Debt NOVEMBER 5, 2018 David Robinson (drobinson2@imf.org) Deputy Director, AFR IMF IMF African Department 2

All Countries Have Debt Total Public Sector Debt Total Public Sector Debt to Population 3

In SSA a Pick Up in Debt AND Debt Service Sub-Saharan Africa: Total Public Sector Debt Sub-Saharan Africa: Interest Payments 4

Increased Number of Countries in Debt Distress Debt Risk Status for PRGT Eligible Low-income Developing Countries Countries at High Risk or in Debt Distress: Cumulative Contribution from Debt Decomposition 5

Mixed progress on stabilizing debt, but composition of adjustment can be improved Average Fiscal Balance and Public Debt (percent of GDP) Fiscal Developments 2013 17 6

Domestic revenue mobilization capturing the returns on public investment needs to advance 1995 2016 Greater than 18 percent Between 13 and 18 percent Less than 13 percent Data not available 7

Growth is recovering, but is too low over the medium-term. Real GDP Growth Real GDP per Capita Growth 8

Africa s rising debt Session 1. Debt dynamics in Africa s complex financing landscape #AfricasRisingDebt @ODIdev 14:00 15:30

Debt Dynamics in Sub-Saharan Africa Doerte Doemeland Practice Manager Global Macro & Debt Unit Macroeconomics, Trade & Investment Global Practice World Bank Group Conference on Africa s Rising Debt ODI, London - November 5, 2018

Public debt has increased in Sub-Saharan Africa since 2013. 140 120 100 80 60 40 20 0 Sub-Saharan Africa: Evolution of Public Debt (percent of GDP) 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Average Median 25th Percentile 75th Percentile Note: Public debt covers general government gross debt. Graph excludes high-income countries. Source: World Economic Outlook Database, October 2018.

The composition of public debt in Sub-Saharan Africa shifted towards commercial financing and non-paris Club bilateral creditors. 30 20 10 Sub-Saharan Africa: Evolution of Domestic Currency Debt (in percent of GDP) 27 25 16 14 14 15 19 15 11 12 11 26 Sub-Saharan Africa: Change in Composition of External PPG Debt (in percent of GDP, 2007-2016) Non-Paris Club bilateral Commercial Multilateral 0 Sub SaharanLow IncomeLower MiddleUpper Middle Africa Income Income Average 2007 Average 2012 Paris Club Bilateral -6-4 -2 0 2 4 Source: WB Africa Pulse, April 2018. Source: International Debt Statistics and WB staff calculations. Excludes IBRD countries.

The 2017 revisions of the joint Bank-Fund DSF respond to this evolving financial landscape. The revised DSF is more complete. Realism tools ensure quality of inputs. DSA covers relevant risks not previously analyzed. CI and stress tests use expanded set of country-specific information. Transparency and engagements are enhanced. Tools help to make explicit underlying assumptions. Country classification is derived from additional observable variables. You can better understand and articulate differences in views. The revised DSF has been simplified. Redundant indicators and stress tests have been eliminated. Template has been streamlined, with several features automated.

Conclusion 1. Public debt levels in Sub-Saharan Africa have been rising. While they remain below pre-hipc levels, there is a risk to further increases. 2. Increased reliance on financing in commercial terms has contributed to higher debt service costs and risks, while rising exposure to non-traditional external creditors could complicate crisis resolution. 3. The revised DSF responds to the changing financial landscape: Update (additional data), adapt (liquidity risks), improve (reduced false alarms; greater scrutiny). 4. The World Bank and the IMF are pursuing a multi-pronged approach to help countries address debt vulnerabilities: stronger debt analytics; more debt transparency (creditor outreach on sustainable lending and improved data coverage); and improved debt/fiscal risk management, including scaled-up TA on debt management.

Thank you!

Africa s rising debt Session 1. Debt dynamics in Africa s complex financing landscape #AfricasRisingDebt @ODIdev 14:00 15:30