As public debt levels rise, increasing debt-servicing costs and the risk of debt distress, the need for action in attaining long-term debt sustainability intensifies. The Financing for Development process recognizes the impact of systemic risk and the external environment on debt sustainability and suggests actions to comprehensively address debt crisis prevention and resolution. Capacity building in debt management can help maintain debt sustainability in debtor countries, as can strengthening analytical tools for debt sustainability assessments along with other tools of debt crisis prevention and management.
Photo by Pau Casals
As public debt levels rise, increasing debt-servicing costs and the risk of debt distress, the need for action in attaining long-term debt sustainability intensifies. The Financing for Development process recognizes the impact of systemic risk and the external environment on debt sustainability and suggests actions to comprehensively address debt crisis prevention and resolution. Capacity building in debt management can help maintain debt sustainability in debtor countries, as can strengthening analytical tools for debt sustainability assessments along with other tools of debt crisis prevention and management.
Photo by Pau Casals