[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110494-en":3,"doc-seo-110494-105":31,"detail-sidebar-cat-0-en-105":92},{"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":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},110494,8796095462418,"Noah","https://ap-avatar.wpscdn.com/avatar/80000253c1241d02b47?x-image-process=image/resize,m_fixed,w_180,h_180&k=1778826106357471780",8,"Research & Report","CABO VERDE: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS - External Debt Distress Risk Moderate, Overall High","Joint World Bank-IMF Debt Sustainability Analysis for Cabo Verde assesses debt distress risk as high overall, while external debt distress is rated moderate and upgraded from the prior DSA. Threshold breaches occur mainly in 2022 for the present value of public and publicly guaranteed external debt-to-GDP under the baseline, and persist under stress tests. Liquidity indicators remain below thresholds due to the concessional profile of external debt. Sustainability relies on assumptions including post-2022 recovery, a return to pre-pandemic fiscal consolidation, and continued structural reforms, especially restructuring state-owned enterprises and strengthening debt management and the government securities market.","Public Disclosure Authorized  \nPub lic Disc losure Authorized  \nApproved by:  \nAbebe Adugna and Marcello Estevão (IDA); Costas Christou, Johannes Wiegand (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| CABO VERDE: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | Moderate |\n| Overall risk of debt distress | High |\n| Granularity in the risk rating | Sustainable |\n| Application of judgment | No |\n\nCabo Verde’s risk of overall debt distress remains high, unchanged from the joint WB/IMF Debt Sustainability Analysis (DSA) of October 20201. The risk of external debt distress, on the other hand, is assessed at moderate, upgraded from the last DSA. The present value (PV) of public and publicly guaranteed (PPG) external debt-to-GDP ratio breaches its threshold only in 2022 under the baseline, and protractedly under stress test scenarios. The breach under the baseline is of shorter duration compared to the last DSA due to the GDP rebasing. Liquidity indicators (debt service to revenue and to export ratios) remain firmly below their respective thresholds under the baseline, reflecting the high concessional nature of Cabo Verde’s external debt. The PV of total public debt-to-GDP ratio is projected to breach the threshold during 2022– 28 under the baseline scenario and stress test; at the same time, The external and overall debt outlook is assessed to be sustainable and is predicated on several assumptions, including continued recovery of economic activity in 2022, a return to the pre-pandemic fiscal consolidation path as well as resumption of structural reforms, notably to restructure StateOwned Enterprises (SOEs) to reduce fiscal risks (including from contingent liabilities) and improve the business environment. Prudent borrowing policies through sourcing mainly concessional external loans and strengthened debt management, as well as measures to enhance the functioning of the government securities market are critical to sustainable debt dynamics over time. In view of Cabo Verde’s vulnerability to exogenous shocks, continuous progress in export and output diversification are also needed for long-term debt sustainability.  \n1Cabo Verde’s debt-carrying capacity is assessed as “strong” as in the previous DSA with a composite index score of 3.23, which is based on the October 2021 WEO and the 2020 CPIA.  \n1. Coverage of the public sector is in line with the previous DSA (Table 1) . Consistent with the fiscal accounts, social security funds and local governments are excluded from the DSA, while the coverage of extra budgetary funds (EBFs) is focused on government support to State-Owned Enterprises (SOEs) through on-lending and capitalization. Government guarantees to SOEs’ external borrowing are included in the baseline stock of debt, but publicly guaranteed domestic debt and non-guaranteed debt by SOEs are not included. Efforts to broaden the coverage of public sector debt are ongoing, including under a World Bank project focused on SOEs.2 External debt is defined on a residency basis.  \n2. Recent efforts to strengthen the quality and coverage of public debt data have shown results. As part of the Fund supported program, the authorities introduced a new system of recording and monitoring debt which resulted in more accurate and timely dissemination of information on public debt. This should help improve the quality and timeliness of data available to the authorities for planning and debt management purposes.  \n3. The contingent liability tailored stress test is amended to reflect gaps in the debt coverage discussed above (Table 1) . First, the default shock of 0 percent of GDP for the components of general government not captured in the baseline stock of debt is raised to 0.2 percent of GDP to account for the size of publicly guaranteed domestic debt of local governments. The social security fund (INPS) financial ","cbCaiftx7QmRJDmJ","https://ap.wps.com/l/cbCaiftx7QmRJDmJ","pdf",1371224,4,1,21,"English","en",105,"# Risk of debt distress\n## External debt distress and overall risk\n## Threshold breaches and liquidity indicators\n# Macroeconomic and policy assumptions\n## Recovery, fiscal consolidation, and structural reforms\n## Borrowing strategy and debt management\n# Coverage of public sector debt\n## Scope exclusions and inclusion rules\n## Data quality improvements\n# Contingent liability stress tests\n## Amendments for debt coverage gaps\n## Shock assumptions and SOE vulnerabilities\n# Context and recent economic backdrop\n## Pre-COVID growth and reforms","[{\"question\":\"How is Cabo Verde’s overall debt distress risk assessed?\",\"answer\":\"The overall risk of debt distress remains high and is unchanged from the previous joint WB/IMF DSA.\"},{\"question\":\"What is the assessment for external debt distress risk and how does it differ from the last DSA?\",\"answer\":\"External debt distress risk is assessed as moderate and upgraded from the last DSA.\"},{\"question\":\"Which factors underpin the assessment of an externally and overall sustainable debt outlook?\",\"answer\":\"The assessment is predicated on continued recovery of economic activity in 2022, a return to the pre-pandemic fiscal consolidation path, and resumption of structural reforms, including restructuring state-owned enterprises to reduce fiscal and contingent liabilities.\"}]","CABO VERDE: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS - External Debt Distress Risk Moderate, Overall High | PDF",1784485693,53,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"cabo-verde-joint-bank-fund-debt-sustainability-analysis-external-debt-distress-risk-moderate-overall-high","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":20},"https://docshare.wps.com/document/cabo-verde-joint-bank-fund-debt-sustainability-analysis-external-debt-distress-risk-moderate-overall-high/110494/",{"url":53,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"How is Cabo Verde’s overall debt distress risk assessed?","Question",{"text":76,"@type":77},"The overall risk of debt distress remains high and is unchanged from the previous joint WB/IMF DSA.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"What is the assessment for external debt distress risk and how does it differ from the last DSA?",{"text":81,"@type":77},"External debt distress risk is assessed as moderate and upgraded from the last DSA.",{"name":83,"@type":74,"acceptedAnswer":84},"Which factors underpin the assessment of an externally and overall sustainable debt outlook?",{"text":85,"@type":77},"The assessment is predicated on continued recovery of economic activity in 2022, a return to the pre-pandemic fiscal consolidation path, and resumption of structural reforms, including restructuring state-owned enterprises to reduce fiscal and contingent liabilities.","https://schema.org",{"og:url":53,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]