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Debt Sustainability Analysis (DSA): An E-Learning Training Course



Debt Sustainability Analysis: An E-learning Training Course

This E-learning course provides a comprehensive survey of recent approaches to sovereign debt sustainability analysis (DSA). It covers a wide range of issues relating to DSA and discusses them from both a theoretical and an empirical perspective. Moreover, the course brings together case studies and a simulation exercise.

The E-learning course is targeted at policy makers, debt analysts, practitioners, academics, and interested students. The course consists of four stand-alone modules which will be updated regularly and can thus be used as a reference point both for policy makers and applied researchers.


Module 1:

Debt Sustainability Analysis

A. The IMF/World Bank Framework.

B. Alternative Approaches.

Module 1 defines debt sustainability, presents the IMF approach to DSA for countries with market access (emerging market countries) and the IMF/World Bank DSA for low income countries (LICs) with limited market access. The module concludes by discussing the several caveats with the classical approach and presenting alternative approaches to debt sustainability analysis.


Module 2:

Debt Management

A. An Effective Debt Management Office.

B. The Rise of Domestic Liabilities.

Module 2 presents the framework for structuring an effective debt management office and discusses the role of the back, middle and front offices. This module also describes two of the most commonly used tools for debt recording and management: the UNCTAD DMFAS system and the Commonwealth CS-DRMS system. The last part of the module describes recent changes in debt management, focusing on the increasing importance of domestically issued debt.


Module 3:

Debt Relief and Sovereign Debt Restructuring

Module 3 focuses on debt relief and debt restructuring mechanisms. It describes the working of the Paris and London Clubs and the HIPC and MDRI Initiatives. The module also describes recent approaches aimed at solving defaults on bonded debt. In particular, it discusses the role of Collective Action Clauses (CACs) and compares CACs with the Sovereign Debt Restructuring Mechanism (SDRM) proposed by former IMF's First Deputy Managing Director Anne Krueger. The module concludes by describing two case studies of debt restructuring: Korea (1997-98) and Argentina (2001).


Module 4:

Debt Analysis Tools

A. The World Bank/DMFAS DSM+.

B. A DSA Simulation Exercise.

Module 4 describes the DMFAS/World Bank DSM+ debt sustainability analysis tool and provides a simulation exercise based on the IMF/World Bank DSA framework for low income countries.


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