The Democratic Republic of the Congo - Joint World Bank-IMF Debt Sustainability Analysis
According to the updated Low-Income Country Debt Sustainability Framework (LIC DSF), the Democratic Republic of the Congo (DRC)’s debt-carrying capacity was assessed as weak. DRC remains at a moderate risk of external and overall debt distress, wit...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/929601570790408335/The-Democratic-Republic-of-the-Congo-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-September-2019 http://hdl.handle.net/10986/32577 |
| Summary: | According to the updated Low-Income
Country Debt Sustainability Framework (LIC DSF), the
Democratic Republic of the Congo (DRC)’s debt-carrying
capacity was assessed as weak. DRC remains at a moderate
risk of external and overall debt distress, with limited
space to absorb shocks. The debt coverage has been improved
since the last DSA, especially on domestic debt. The
external nominal debt ratios are lower than at the time of
the 2015 debt sustainability analysis (DSA), however the
country shows vulnerability in debt repayment capacity, even
under the baseline, due to weak revenue mobilization. Most
external debt thresholds are breached under the stress
tests, highlighting the country’s vulnerability to external
shocks. Given limited buffers, prudent borrowing policies
are essential by prioritizing concessional loans and
strengthening debt management policies |
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