[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110153-en":3,"doc-seo-110153-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},110153,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","Burkina Faso - Joint Bank-Fund Debt Sustainability Analysis - Risk Assessment and Debt Sustainability Findings","Burkina Faso is assessed to remain at a moderate risk of external debt distress and overall public debt distress, with debt judged sustainable over the medium term. Under baseline assumptions, external debt indicators stay below relevant indicative thresholds and even under the most extreme stress tests. Judgment increases the external risk because of high macroeconomic uncertainty and uncertainty around donor concessional financing. Overall public debt breaches the benchmark under a commodity price shock scenario, driven by vulnerabilities including security- and humanitarian-related spending needs, limited donor support, short maturities on domestic debt, reliance on the WAEMU bond market, and an undiversified export base.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nManuela Francisco and Abebe Adugna (IDA); Annalisa Fedelino and Maria Gonzalez (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| BURKINA FASO: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS1 |  |\n| --- | --- |\n| Risk of external debt distress | Moderate |\n| Overall risk of debt distress | Moderate |\n| Granularity in the risk rating | Some, but limited, space to absorb shocks on external and public debt |\n| Application of judgment | Yes: risk of debt distress increased based on high macroeconomic uncertainty, uncertainty regarding concessional finance from donors |\n\nBurkina Faso remains at moderate risk of external debt distress and overall public debt distress, and debt remains sustainable over the medium term. The current debt-carrying capacity is consistent with a classification of ’medium’.2 These ratings are unchanged from the November 2020 Debt Sustainability Analysis (DSA), but debt ratios have deteriorated significantly. All external debt indicators remain below the relevant indicative thresholds under the baseline scenario and the most extreme stress test. While the mechanical results point to a low risk of external debt distress, judgment was applied, considering the high degree of macroeconomic uncertainty as well as uncertainty regarding concessional finance from donors, other than the World Bank. The risk of external debt distress is therefore assessed to be moderate. Overall public debt breaches the relevant benchmark under the most extreme scenario of a commodity price shock  \n1 This DSA was prepared jointly with the World Bank and in collaboration with the Burkina Faso authorities.  \n2 Burkina Faso’s Composite Indicator (CI) is 2.93 based on the October 2022 WEO and the 2021 CPIA released, corresponding to the medium debt-carrying capacity.  \nThe risk of overall debt distress in Burkina Faso therefore remains moderate, with some, but limited, space to absorb shocks on external and public debt. The key vulnerabilities to debt sustainability include: (i) expenditures required to contain the security crisis; (ii) expenditures required to address food insecurity and the humanitarian crisis; (iii) risks arising due to limited support from donors, while a large proportion of the domestic debt portfolio has relatively short maturities; (iv) increased reliance on the expensive WAEMU regional bond market; and (v) undiversified export base, with high vulnerability to external price shocks.  \n1. The country’s coverage of public debt has significantly expanded since 2020 to include guarantees, local government debt, and non-guaranteed SOE debt (Text Table 1) . Previous DSAs only included external and domestic obligations of the central government. With the support of the World Bank’s Sustainable Development Finance Policy, the authorities expanded the coverage of public debt, which is provided in a quarterly debt bulletin (Bulletin Statistique de la Dette) . Local government debt and SOE debt are now being tracked through the debt information system (SYGADE) and reported. The bulletin also includes outstanding government guaranteed loans disaggregated by type of creditor and a list of the latest contracted public loans. The data on newly included items is comprehensive, with Burkina Faso meeting the “full disclosure” rating for all categories on the World Bank’s Debt Transparency Heat Map asthe only IDA country.3  \n\n|  |  |  |  |\n| --- | --- | --- | --- |\n|  | Subsectors of the public sector\u003Cbr>Central government\u003Cbr>State and local government\u003Cbr>Other elements in the general government\u003Cbr>o/w: Social security fund\u003Cbr>o/w: Extra budgetary funds (EBFs)\u003Cbr>Guarantees (to other entities in the public and private sector, including to SOEs) Central bank (borrowed on behalf of the government)\u003Cbr>Non-guaranteed SOE debt | Check box |  |\n| 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  | X\u003Cbr>X\u003Cb","cbCaiqWLm2Nlf9cv","https://ap.wps.com/l/cbCaiqWLm2Nlf9cv","pdf",682926,1,20,"English","en",105,"# Risk ratings and overall conclusions\n## External debt distress assessment\n## Overall public debt distress assessment\n# Key vulnerabilities and drivers\n## Security crisis and humanitarian spending\n## Food insecurity and donor support constraints\n## WAEMU bond market reliance and export concentration\n# Public debt coverage expansion\n## Inclusion of guarantees, local government debt, and SOE debt\n## Data sources and disclosure ratings","[{\"question\":\"What is the assessed risk of external and overall debt distress for Burkina Faso?\",\"answer\":\"The document concludes that Burkina Faso faces a moderate risk of external debt distress and a moderate risk of overall public debt distress.\"},{\"question\":\"Why is judgment used to increase the external debt distress risk despite baseline results?\",\"answer\":\"Judgment is applied due to high macroeconomic uncertainty and uncertainty about donor concessional financing beyond the World Bank.\"},{\"question\":\"Which scenario causes overall public debt to breach the benchmark?\",\"answer\":\"Overall public debt breaches the relevant benchmark under the most extreme commodity price shock scenario.\"}]",1784484138,50,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"burkina-faso-joint-bank-fund-debt-sustainability-analysis-risk-assessment-and-debt-sustainability-findings","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/burkina-faso-joint-bank-fund-debt-sustainability-analysis-risk-assessment-and-debt-sustainability-findings/110153/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What is the assessed risk of external and overall debt distress for Burkina Faso?","Question",{"text":74,"@type":75},"The document concludes that Burkina Faso faces a moderate risk of external debt distress and a moderate risk of overall public debt distress.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why is judgment used to increase the external debt distress risk despite baseline results?",{"text":79,"@type":75},"Judgment is applied due to high macroeconomic uncertainty and uncertainty about donor concessional financing beyond the World Bank.",{"name":81,"@type":72,"acceptedAnswer":82},"Which scenario causes overall public debt to breach the benchmark?",{"text":83,"@type":75},"Overall public debt breaches the relevant benchmark under the most extreme commodity price shock 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