[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110271-en":3,"doc-seo-110271-105":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},110271,1649267921044,"Ava Thompson","https://us-avatar.wpscdn.com/avatar/1800007509477c92dfb?_k=1782875107921204101",8,"Research & Report","Burkina Faso - Joint World Bank-IMF Debt Sustainability Analysis","Burkina Faso remains at a moderate risk of external debt distress and an overall moderate risk of public debt distress, with debt assessed as sustainable over the medium term. External debt indicators stay below relevant indicative thresholds across the baseline and the most extreme stress test, but judgment increases the external risk due to high macroeconomic uncertainty and uncertainty about concessional financing from donors. Overall public debt breaches the relevant benchmark under a commodity price shock, and limited space to absorb shocks is noted. Key vulnerabilities include humanitarian and security spending needs, higher refinancing risks, reliance on the expensive WAEMU bond market, and an undiversified export base vulnerable to external price shocks.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nAbebe Adugna and Manuela Francisco (IDA); Annalisa Fedelino and Bergljot Barkbu (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 ANALYSIS |  |\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 |\n| Application of judgment | Yes: risk of external 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 March 2023 Debt Sustainability Analysis. 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. The risk of overall debt distress in Burkina Faso therefore remains moderate, with some, but limited, space to absorb shocks on external debt. The key vulnerabilities to debt sustainability include: (i) expenditures required to address food insecurity and the humanitarian crisis; (ii) expenditures required to contain the security crisis; (iii) increased refinancing risks arising due to limited support from donors, a large proportion of the debt portfolio having relatively short maturities; (iv) increased reliance on the expensive WAEMU regional bond market; and (v) an undiversified export base with high vulnerability to external price shocks.  \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 April 2023 WEO and the 2021 CPIA released, corresponding to the medium debt-carrying capacity.  \n1. The country’s coverage of public debt includes central government debt, guarantees, local government debt, and non-guaranteed SOE debt (Text Table 1) . With the support of the World Bank’s Sustainable Development Finance Policy (SDFP), 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 |  | XX\u003Cbr>XXX |  |\n| 1/ The Central Bank is not allowed to borrow on behalf of the central government. |  |  |  |\n\n2. Despite a relatively low level of contingent liabilities, this DSA con","cbCaioEbPwhkCUsh","https://ap.wps.com/l/cbCaioEbPwhkCUsh","pdf",770376,1,21,"English","en",105,"# Risk assessment and judgment\n## External debt distress rating\n## Overall public debt risk and stress tests\n# Debt coverage and data governance\n## Public debt subsectors and disclosure\n## Contingent liabilities and stress testing\n# Key vulnerabilities to sustainability","[{\"question\":\"Why is the external debt distress risk rated as moderate for Burkina Faso despite low mechanical signals?\",\"answer\":\"Judgment is applied because macroeconomic uncertainty is high and there is uncertainty about concessional financing from donors beyond the World Bank, leading to an increased external risk assessment.\"},{\"question\":\"What stress test drives the conclusion that overall public debt risk remains moderate?\",\"answer\":\"Overall public debt breaches the relevant benchmark under the most extreme scenario, specifically a commodity price shock.\"},{\"question\":\"Which vulnerabilities are identified as most important for Burkina Faso’s debt sustainability?\",\"answer\":\"Vulnerabilities include spending needs for food insecurity and the humanitarian crisis, spending for the security crisis, higher refinancing risks from limited donor support and short maturities, increased reliance on the WAEMU regional bond market, and an undiversified export base exposed to external price shocks.\"}]",1784484662,53,{"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-world-bank-imf-debt-sustainability-analysis","",{"@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-world-bank-imf-debt-sustainability-analysis/110271/",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},"Why is the external debt distress risk rated as moderate for Burkina Faso despite low mechanical signals?","Question",{"text":74,"@type":75},"Judgment is applied because macroeconomic uncertainty is high and there is uncertainty about concessional financing from donors beyond the World Bank, leading to an increased external risk assessment.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"What stress test drives the conclusion that overall public debt risk remains moderate?",{"text":79,"@type":75},"Overall public debt breaches the relevant benchmark under the most extreme scenario, specifically a commodity price shock.",{"name":81,"@type":72,"acceptedAnswer":82},"Which vulnerabilities are identified as most important for Burkina Faso’s debt sustainability?",{"text":83,"@type":75},"Vulnerabilities include spending needs for food insecurity and the humanitarian crisis, spending for the security crisis, higher refinancing risks from limited donor support and short maturities, increased reliance on the WAEMU regional bond market, and an undiversified export base exposed to external price shocks.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & 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