IMF to launch new method for judging debt sustainability
The update of the debt assessment methodology, the first since 2013 in the wake of a European sovereign debt crisis, is expected to be operational by the fourth quarter of 2021 or the first quarter of 2022, IMF officials said
Reuters | February 4, 2021 | Updated 09:25 IST
The assessments are important because they help determine how much a country can borrow and still meet the IMF's stringent requirements that its debt does not fall into an unsustainable situation
The International Monetary Fund said on Wednesday it is launching a new method of assessing debt sustainability for countries with access to financial markets to more accurately predict risks of financial crises and improve transparency.