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Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis

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collection.link.151
https://openknowledge.worldbank.org/handle/10986/7795
collection.name.151
Debt and Creditworthiness Study
dc.contributor.author
World Bank
dc.contributor.author
International Monetary Fund
dc.date.accessioned
2019-10-18T14:12:43Z
dc.date.available
2019-10-18T14:12:43Z
dc.date.issued
2019-07
dc.date.lastModified
2021-05-25T09:28:44Z
dc.description.abstract
The Central African Republic (C.A.R.) remains at high risk of external debt distress and overall high risk of debt distress under the revised Debt Sustainability Framework (DSF), unchanged from the 2018 DSA. Solvency indicators (the present values of the external public and publicly guaranteed debt-to-GDP and debt-to-exports ratios) remain below their relevant thresholds in the baseline scenario. However, liquidity indicators (debt service-to-exports and debt service-to-revenue ratios) breach their thresholds in the baseline scenario. Further considerations support the high-risk assessment: the debt indicators are sensitive to standard stress tests; macroeconomic projections are highly uncertain in a volatile security environment; and sizeable contingent liabilities, notably related to the large stock of unaudited potential domestic arrears and the limited financial information available on state-owned enterprises, could materialize. C.A.R.’s debt sustainability is also sensitive to a deterioration of the financing mix. A tailored scenario in which grant financing (of 2 percent of GDP) is replaced by concessional external debt-financing from 2021 onwards would worsen debt sustainability considerably. This shows that the government’s investment program requires grant financing, with concessional debt financing to be considered in exceptional cases.
en
dc.identifier
http://documents.worldbank.org/curated/en/756551570788378574/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019
dc.identifier.uri
http://hdl.handle.net/10986/32581
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
DEBT DISTRESS
dc.subject
DEBT SERVICE BURDEN
dc.subject
CONTINGENT LIABILITY
dc.subject
PUBLIC SECTOR DEBT
dc.subject
PUBLIC AND PUBLICLY GUARANTEED DEBT
dc.subject
EXTERNAL DEBT
dc.subject
DEBT RELIEF
dc.title
Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
en
dc.type
Report
en
okr.crossref.title
Central African Republic - Joint World Bank-IMF Debt Sustainability Analysis
okr.date.disclosure
2019-10-11
okr.doctype
Economic & Sector Work
okr.doctype
Economic & Sector Work :: Debt and Creditworthiness Study
okr.docurl
http://documents.worldbank.org/curated/en/756551570788378574/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/32581
okr.identifier.externaldocumentum
090224b0871cc181_1_0
okr.identifier.internaldocumentum
31472691
okr.identifier.report
142553
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/756551570788378574/pdf/Central-African-Republic-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019.pdf
en
okr.region.administrative
Africa
okr.region.country
Central African Republic
okr.topic
Public Sector Development :: Public Sector Economics
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Finance and Financial Sector Development :: Debt Relief and HIPC
okr.topic
Finance and Financial Sector Development :: Strategic Debt Management
okr.topic
International Economics and Trade :: External Debt
okr.unit
EFI-MTI-Global Macro and Debt (EMFMD)

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