11. External debt-service ratios appear to be contained within the debt distressthresholds . Both debt-service ratios initially decline over 2007-2012 as concessional debt (including repayment of the Paris Club moratorium) is repaid, but subsequently rise from 2012 as repayments for the medium-term external commercial debt commences. This is particularly marked for the debt-service-to-revenue ratio indicating that fiscal consolidation is key to containing debt service pressures in the long-term.
Comparison of IMF/World Bank Indicative Debt
, prioritizing spending and improving investment efficiency—with a view to keep the debt dynamics in check.
12. Côte d’Ivoire remains at moderate risk of external debt distress as in the December 2017 DSA . However, in 2018 new external debt is projected to rise by more than 5 percent of GDP compared to 2017. While in the baseline scenario, all debt burden indicators remain under their respective debt distressthresholds, in the most extreme stress test scenarios, all the debt stock and debt service indicators breach the thresholds of debt distress. In this
Mr. Christian H. Beddies, Ms. Marie-Helene Le Manchec, and Ms. Bergljot B Barkbu
History has shown that debt sustainability matters for sustained development. LICs have struggled with large external debts and destabilizing macro-economic outcomes, and ultimately development has been constrained. Now many LICs' debt burdens have been reduced as a result of debt relief, raising new challenges. As described above, the DSF has been designed to help guide countries and donors in mobilizing resources to finance LICs' development needs while reducing the chances of an excessive buildup of debt.