Bangladesh : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update

Bangladesh : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update

This debt sustainability analysis (DSA) fully updates the May 2017 joint IMF/WB DSA. Bangladesh’s risks of external debt distress and overall debt distress continue to be assessed as low. The FY17 fiscal deficit remains well below the 5 percent of...

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Bibliographic Details
Main Authors: International Development Association, International Monetary Fund
Format: Report
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
PUBLIC SECTOR DEBT
EXTERNAL DEBT
DEBT SERVICE
DEBT SUSTAINABILITY
GRACE AND MATURITY PERIOD
PUBLIC DEBT
INTEREST RATE
CURRENT ACCOUNT DEFICIT
Online Access:http://documents.worldbank.org/curated/en/930921539630112023/Bangladesh-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update
http://hdl.handle.net/10986/30905
Description
Summary:This debt sustainability analysis (DSA) fully updates the May 2017 joint IMF/WB DSA. Bangladesh’s risks of external debt distress and overall debt distress continue to be assessed as low. The FY17 fiscal deficit remains well below the 5 percent of GDP budget target. Spending control and slower implementation of development projects more than compensated for revenue underperformance. The issuance of National Savings Certificates (NSCs) remains high. Over the medium term, debt ratios are projected to remain on a sustainable path, assuming continued spending restraint, with the deficit used to finance productive investment. Boosting budget revenue is key to creating fiscal space for diversification and growth. The authorities are delaying the implementation of the VAT reform further by two years. Any additional costs from spending pressures ahead of the parliamentary elections and from the Rohingya refugees remain key risks.

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