Publication: The Gambia - Joint World Bank-IMF Debt Sustainability Analysis
Date
2019-05
ISSN
Published
2019-05
Author(s)
World Bank
International Monetary Fund
Abstract
An updated DSA indicates that The Gambia
is in external debt distress, though its public debt is
deemed sustainable on a forward-looking basis. The external
debt service-to-exports and -to-revenue ratios breach their
indicative thresholds by large margins in the near term and
signal major liquidity pressures. However, once these
pressures are addressed by the prospective debt relief and
the authorities’ fiscal consolidation and state-owned
enterprise (SOE) reform program, the PV of total public debt
would be brought below its threshold over the medium term.
On the upside, debt relief discussions with external
creditors are progressing and could unlock additional budget
support. Downside risks mainly relate to the political
environment and fiscal discipline, the unravelling of which
could destabilize the economy and worsen the outlook for
public debt.
Citation
“World Bank; International Monetary Fund. 2019. The Gambia - Joint World Bank-IMF Debt Sustainability Analysis. © World Bank, Washington, DC. http://hdl.handle.net/10986/32561 License: CC BY 3.0 IGO.”