Publication: Burkina Faso: Joint Bank-Fund Debt Sustainability Analysis 2018 Update
Loading...
Published
2019-02-07
ISSN
Date
2019-02-15
Author(s)
Editor(s)
Abstract
This joint World Bank/IMF Debt Sustainability Analysis (DSA) has been prepared in the context of the 2018 Article IV consultation and first review of the three-year program supported by the IMF’s Extended Credit Facility (ECF). It is based on end-2017 debt data and the latest methodology underpinning the LIC DSF, which triggered an improvement in debt indicator thresholds. External risk of debt distress in Burkina Faso remains moderate. All external debt indicators remain below the relevant indicative thresholds under the baseline scenario. In line with the Staff Report, the baseline scenario is anchored on an overall fiscal deficit of 3 percent of GDP from 2019. In a customized scenario meant to illustrate fiscal and external risks, two thresholds are breached. The overall public debt does not breach the relevant benchmark in the baseline and Burkina Faso is assessed as having a moderate risk of public debt distress, as the external debt risk rating is moderate. Burkina Faso would need to: (i) maintain a sound macro-fiscal framework; (ii) implement structural reforms to diversify its export base; and (iii) limit non-concessional borrowing to prevent a deterioration of its debt sustainability outlook.
Link to Data Set
Citation
“World Bank; International Monetary Fund. 2019. Burkina Faso: Joint Bank-Fund Debt Sustainability Analysis 2018 Update. © World Bank. http://hdl.handle.net/10986/31300 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Nigeria : Crisis Management and Crisis Preparedness Frameworks(World Bank, Washington, DC, 2013-05)This note elaborates on the recommendations made in the Financial Sector Assessment Program (FSAP) for Nigeria in the areas of contingency planning, crisis management, and bank resolution. It summarizes the findings of the FSAP mission undertaken during September 4 to 19, 2012 and is based upon analysis of the relevant legal and policy documents and extensive discussions with the authorities and private sector representatives. The Nigerian financial system experienced a banking crisis in 2008-2009, partly triggered by the global financial crisis and by domestic events. The decisive crisis response effectively stabilized the banking system, but the challenge now is to devise a credible exit strategy and to strengthen the resolution framework. This note is structured as follows: chapter one sets out an overview of the banking crisis of 2009; chapter two analyses the institutional framework and coordination arrangements for systemic risk monitoring, crisis management, and cross-border coordination; chapter three assesses the approaches to intervene with potential problem institutions at an early stage; chapter four covers crisis management tools including official financial support, the resolution framework, Asset Management Corporation of Nigeria (AMCON); chapter five reviews the deposit insurance framework; and chapter six addresses the issue of legal protection.Publication Financial Sector Assessment Program : Nigeria - Crisis Management and Crisis Preparedness Frameworks(World Bank, Washington, DC, 2013-05)This note elaborates on the recommendations made in the Financial Sector Assessment Program (FSAP) for Nigeria in the areas of contingency planning, crisis management, and bank resolution. It summarizes the findings of the FSAP mission undertaken during September 4 to 19, 2012 and is based upon analysis of the relevant legal and policy documents and extensive discussions with the authorities and private sector representatives. The Nigerian financial system experienced a banking crisis in 2008-2009, partly triggered by the global financial crisis and by domestic events. The decisive crisis response effectively stabilized the banking system, but the challenge now is to devise a credible exit strategy and to strengthen the resolution framework. This note is structured as follows: chapter one sets out an overview of the banking crisis of 2009; chapter two analyses the institutional framework and coordination arrangements for systemic risk monitoring, crisis management, and cross-border coordination; chapter three assesses the approaches to intervene with potential problem institutions at an early stage; chapter four covers crisis management tools including official financial support, the resolution framework, Asset Management Corporation of Nigeria (AMCON); chapter five reviews the deposit insurance framework; and chapter six addresses the issue of legal protection.Publication Financial Sector Assessment Program : Nigeria - Basel Core Principles for Effective Banking Supervision(World Bank, Washington, DC, 2013-05)The assessment of the current state of the implementation of the Basel Core Principles (BCP) for effective banking supervision in Nigeria, against the BCP methodology issued by the Basel Committee on Banking Supervision (BCBS) in October 2006, was completed between August 27 and September 19, 2012, as part of a Financial Sector Assessment Program (FSAP) update, undertaken jointly by the Fund (IMF) and the World Bank, and reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. An assessment of the effectiveness of banking supervision requires a review of the legal framework, both generally and as specifically related to the financial sector, and a detailed examination of the policies and practices of the institutions responsible for banking supervision. Banking systems differ from one country to another, as do their domestic circumstances. The BCPs are capable of application to a wide range of jurisdictions whose banking sectors will inevitably include a broad spectrum of banks. The co-ordination of the activities of the Nigerian banking sector supervisory authorities is conducted under the aegis of the Central Bank of Nigeria (CBN)/Nigeria Deposit Insurance Corporation (NDIC) executive committee on supervision which should ensure that operations of the two supervisory authorities are coordinated to remove overlaps, avoid gaps and ensure adequate information sharing on issues of supervisory concern. The Financial Services Regulation Coordinating Committee (FSRCC) provides the platform for the co-ordination among and information sharing with regulatory authorities, inter alia with reference to financial sector stability, and supervision of financial conglomerates, financial holding companies and bank holding companies. The Nigerian economy has experienced a number of domestic and external shocks in recent years, which impacted the banking sector. The Nigerian economy emerged from the banking crisis, and has the potential to enjoy an extended period of strong economic growth.Publication Serbia : Financial Sector Assessment(World Bank, Washington, DC, 2010-06-08)The Financial Sector Assessment Program (FSAP) update team found that the authorities have progressed in implementing the key recommendations from the initial assessment. The 2005 FSAP team revealed a number of vulnerabilities, including (i) high credit growth, largely financed by foreign banks, which resulted in rising nonperforming loans (NPLs), and (ii) poor management and low capital of several systematically important state-controlled banks. The Basel Core Principle on Banking Supervision (BCP) assessment identified a number of deficiencies in banking supervision. The update team found that the authorities took action to address the issues highlighted by the 2005 FSAP. In particular, they adopted prudential measures to slow credit growth, including higher risk weights for foreign currency loans to un-hedged borrowers, and exposure limits to households. Two systemic state-controlled banks were privatized. Finally, a new banking law was enacted that significantly strengthened supervision on consolidated basis and improved corporate governance and transparency.Publication Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework(Washington, DC, 2014-12)Korea experienced a financial crisis in the late 1990s, which it overcame successfully. The rich experiences gained in handling past crises have helped in the establishment of a broad crisis management framework in Korea. The successful management of the 1997 financial crisis is reported to have been guided by the following principles: (i) bold and decisive measures are required to regain market confidence, rather than incremental ones; (ii) though Government will take the lead in crisis management initiatives, private capital should be encouraged to fully participate in the process; (iii) bank recapitalization and creation of a bad bank are not mutually exclusive options; the crisis management measures should be politically acceptable and have built-in exit strategies with clear time-frames; (iv) moral hazard should be minimized; and (v) all forms of financial protectionism must be rejected. Korea responded to the 2008 global financial crisis with certain policy measures that helped the Korean financial and real sectors to weather the immediate effects of the global crisis. These included policy and financial support to stabilize the money, securities, and bond markets, to extend financial support to corporate and financial entities, and to support small and medium enterprise (SME) and micro finance sectors. The authorities introduced a series of measures to contain the stress in Mutual Savings Banks (MSBs) during 2011 and 2012 and turned them around. The stress in MSBs was largely due to an extensive industry-wide exposure to troubled real estate project financing as well as shareholder and management misconduct.4 Faced with sector-wide stress and declining depositor confidence the financial sector regulatory agencies jointly announced new mitigating measures for the MSB sector.
Users also downloaded
Showing related downloaded files
Publication Comoros Country Climate and Development Report(Washington, DC: World Bank, 2025-06-18)The Union of the Comoros (The Comoros) has significant vulnerability to climate change-related risks but has considerable opportunities to strengthen preparedness and resilience against these challenges. According to the Notre Dame Global Adaptation Index, the Comoros is the 29th-most vulnerable country to climate change and the 163rd most ready to adapt (out of 191). The Comoros archipelago is exposed to many natural hazards that adversely affect the country’s natural capital, people, and physical infrastructure. In 2014, the economic cost of climate-related disasters was estimated at 5.7 million dollars annually, equivalent to 9.2 percent of Gross Domestic Product (GDP). Between 2018 and 2023, as many as 11 tropical depressions or cyclones impacted the country, with Cyclone Kenneth causing the greatest damage, equivalent to 14 percent of GDP, resulting in total economic growth falling from 3.6 percent in 2018 to 1.9 percent in 2019. More than 345,000 people (40 percent of the population) were affected by the cyclone, with 185,000 people experiencing severe impacts and 12,000 people displaced. However, there is an opportunity for the country to grow more robust and shock-responsive, and to establish pre-positioned funding mechanisms to enhance future crisis response efforts. For the Comoros, adaptation and climate-resilient development are the key climate change focus areas, with the country projected to face 836 million dollars 2050 in additional costs due to climate-related impacts. Current plans to adapt to the impacts of climate change in the Comoros include efforts to improve water management, strengthen coastal protection, and develop climate-smart agriculture practices. Given the country’s reliance on its natural resource base for economic growth and mobility, protection of these resources from climate change will be essential for promoting resilient growth and development. In addition to growing the adaptive capacity of the country’s natural resource sectors, strategic economic diversification will be important to help minimize future climate impacts, and development activities will need to be undertaken in such a way as to attract low-carbon co-benefits. The Union of the Comoros is committed to addressing climate change through its Nationally Determined Contribution (NDC) and national priorities. The country’s NDC (which was revised in 2021 for a ten-year horizon) sets ambitious targets, with a goal of reducing greenhouse gas emissions by 23 percent by 2030. The country also plans to significantly increase the share of renewable energy in its energy portfolio, reaching 33 MW by 2030. This will not only promote low-carbon development but also reduce the country’s dependency on imported oil and coal, which currently make up 95 percent of the energy mix. Additionally, the Comoros has declared its intention to increase CO2 removals by 47 percent by 2030, compared to BAU.Publication Dominican Republic Country Climate and Development Report(Washington, DC: World Bank, 2023-11-30)The Dominican Republic has made significant progress in boosting economic growth and reducing poverty, but it still faces challenges to achieve inclusive and equitable development, increase productivity, and improve the competitiveness and sustainability of primary sectors like agriculture, water, tourism, and energy. The National Development Strategy (NDS) and the National Multi‑Year Public Sector Plan (NPSP) aim to address development and climate challenges and promote a green, inclusive and resilient future. The DR is highly vulnerable to climate change, which is likely to compound existing development challenges. By 2050, climate change impacts are expected to decrease labor productivity and affect health, crop yields, tourism, infrastructure capital, and natural ecosystems such as forests and coastal areas. Climate change also poses risks to the financial system such as the banking sector's heightened credit exposure to tropical cyclones and droughts. Although the DR has a small carbon footprint, the country's GHG emissions have been rising, mainly in the energy, waste, and agricultural sectors. Fostering a low‑carbon growth path can support the country's climate change goals while bringing important development co‑benefits. The Dominican Republic CCDR employs a version of the MANAGE model. This CCDR further extends the model to incorporate the path of emissions from key sectors (transport, energy, AFOLU), and to incorporate DR‑specific climate damage functions to introduce the impact of climate change on the economy.Publication Egypt Country Climate and Development Report(World Bank, Washington, DC, 2022-11-08)This Country Climate and Development Report (CCDR) explores the challenges and opportunities of improving the alignment of Egypt’s development goals with its climate ambition. The CCDR offers a set of policy options and investment opportunities that, if implemented within five years, can deliver short-term benefits in selected sectors while also creating momentum toward important long-term benefits. The options identified in this report provide: Cost-effective adaptation approaches to reduce the negative impacts of climate change; Policy interventions to improve efficiency in the use of natural resources, and complement the creation of fiscal space to finance projects that reduce the vulnerability of people and the economy to climate shocks; Actions that can help avoid carbon lock-in through low-cost policy changes; Interventions to strengthen the country’s competitiveness while reducing negative externalities (such as pollution) and incentivize Egypt’s move towards a low carbon growth path in a manner consistent with its development objectives. Overall, the report identifies opportunities to reduce inefficiencies, manage risk, and strengthen the foundation for increased private sector participation.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Côte d’Ivoire Country Climate and Development Report(Washington, DC: World Bank, 2023-11-02)Le présent CCDR comporte trois messages principaux: (i) En premier lieu, le maintien du statu quo ne permettra plus de soutenir la croissance économique de la Côte d'Ivoire et ses ambitions de devenir un pays à revenu intermédiaire de la tranche supérieure à l’horizon 2030, tout en réduisant considérablement la pauvreté. Toutes choses étant égales par ailleurs, et dans le cadre d’un scénario de climat sec/plus chaud, le changement climatique devrait réduire le produit intérieur brut (PIB) réel de 13 pour cent d’ici à 2050, ce qui empêcherait 1,63 million de personnes de s’affranchir de la pauvreté. Quoique dispendieuses, les mesures d’adaptation peuvent potentiellement compenser une grande partie de l’impact négatif du climat, notamment sur les populations démunies; (ii) Deuxièmement, des secteurs économiques clés, dont le cacao et l’énergie, courent le risque de connaître des contre-performances si aucune mesure n’est prise maintenant même pour faire face aux impacts climatiques et tirer parti des mutations technologiques ou des changements réglementaires. En outre, les centres urbains, qui sont des pôles économiques, sont exposés aux dommages climatiques subis par les infrastructures et aux pertes considérables de moyens de subsistance subies par les populations démunies vivant dans des communautés à faibles revenus. Des menaces planent également sur les routes, les réseaux numériques et les autres infrastructures qui assurent l’interconnectivité au plan national, garantissant l’efficacité des déplacements et l’accès aux marchés et aux services; (iii) Troisièmement, la Côte d'Ivoire n’est pas actuellement prête à faire face aux conséquences du changement climatique. Sa capacité d’adaptation en est encore à ses balbutiements, ses institutions et sa coordination de l’action en faveur du climat sont fragmentaires, et ses politiques et programmes ne sont pas à la hauteur du défi climatique auquel sont confrontées les populations vulnérables. Entre-temps, la mise en œuvre des stratégies et plans existants reste limitée. Les composantes réglementaires, institutionnelles et climatiques nécessaires à la gestion des impacts climatiques doivent être revues ou mises en place. Certes, la croissance du secteur privé a connu une tendance positive, mais elle n’atteint pas encore son potentiel en termes de portée et d’échelle, si bien qu’elle doit encore se développer pour jouer son rôle essentiel à l’adaptation aux effets du changement climatique et à leur atténuation.