Liberia : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Liberia remains at moderate risk of debt distress, though care and precision in implementing its ambitious infrastructure program will be critical. Under the baseline scenario, which reflects staff’s interpretation of the authorities’ stated plans,...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/382051539632241719/Liberia-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30903 |
| Summary: | Liberia remains at moderate risk of debt
distress, though care and precision in implementing its
ambitious infrastructure program will be critical. Under the
baseline scenario, which reflects staff’s interpretation of
the authorities’ stated plans, Liberia will remain at
moderate risk of debt distress but move closer to thresholds
that mark a high probability of debt distress. Adverse risks
to the baseline are also significant. Staff discussed an
alternative reform scenario that would ease the risk of debt
distress while achieving roughly the same level of spending.
The reform scenario assumes that all external financing
would be on concessional terms and the amount of additional
borrowing would be strictly controlled and supplemented with
domestic resource mobilization. Such steps would be
beneficial not only to improve the safety margin for the
preservation of debt and macroeconomic stability, but also
to sustain broad-based growth over the forecast horizon. |
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