IMF to roll out new method to judge debt sustainability Reuters 2/3/2021
WASHINGTON, Feb 3 (Reuters) - 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.
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.
Assessing a country s debt sustainability has always been more art than science, and the new system aims to inject a bit more science into the process, Jeromin Zettelmeyer, deputy director of the IMF Strategy, Policy and Review Department, told a Web briefing.
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.