[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110039-en":3,"doc-seo-110039-105":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},110039,7971461741311,"Ophelia","https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826",8,"Research & Report","Democratic Republic of São Tomé and Príncipe - Joint World Bank-IMF Debt Sustainability Analysis - February 2021","A joint World Bank and IMF debt sustainability analysis for Democratic Republic of São Tomé and Príncipe assesses external and public debt distress under a baseline projection. The country remains in debt distress due to prolonged unsettled external arrears and severe public-sector liquidity constraints reflected in domestic arrears of the loss-making utility EMAE. Despite COVID-19-driven breaches in key external ratios in 2020–21, most indicators stay below thresholds. Total PPG debt is projected to breach the weak-capacity benchmark through 2025, while contingent liabilities from ENCO-related arrears and related legal fines are assessed as limited.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nDEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE JOINT WORLD BANK  \nIMF DEBT SUSTAINABILITY ANALYSIS  \nFebruary 2021  \nPrepared jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão (IDA) and David Owen and Anna Ilyina (IMF)  \n\n| São Tomé and Príncipe: Joint Bank-Fund Debt Sustainability Analysis |  |\n| --- | --- |\n| Risk of external debt distress | In debt distress |\n| Overall risk of debt distress | In debt distress |\n| Granularity in the risk rating | Sustainable |\n| Application of judgement | No |\n\nThe country remains in debt distress due to prolonged unsettled external arrears. In addition, the large domestic arrears of the loss-making state-owned utility company (EMAE) highlight the severe liquidity constraints of the public sector. Staff assesses that the country has the capacity torepay the external arrears over time, as indicated by the relatively low external debt ratios. While the present value (PV) of the external public and publicly guaranteed (PPG) debt-to-GDP and debt-to-exports ratio breach their thresholds in 2020 and 2021 due to the COVID-19 shock, all other external PPG debt burden indicators remain below their thresholds throughout the projection horizon in the baseline scenario. 1 , 2 The PV of total PPG debt (after accounting for the concessional terms of EMAE’s and central government debt and arrears to the country’s fuel supplier, ENCO) is projected to breach the benchmark associated with a weak debt-carrying capacity (35 percent of GDP) through 2025. As its downward trajectory remains intact, predicatedon the authorities’ commitment to implement EMAE’s planned reforms and borrow externally only on concessional terms at a measured pace, public debt sustainability is preserved but now subject to larger risks. The likelihood of contingent liabilities materializing, particularly ENCO’s arrears to its parent company Sonangol (a state-owned company of Angola), remains low.  \n1 World Bank staff simulated a scenario assuming full disbursement of annual IDA allocations under credit terms, which did not affect the risk of external debt distress rating.  \n2 São Tomé and Príncipe has requested participation in the DSSI from all its official bilateral creditors, and on August 12,2020, Portugal, Brazil, and members of the Paris Club formally issued an MOU accepting the request. The DSA baseline assumes the application of DSSI terms to eligible debt from G20/Paris Club creditors and other bilateral creditors that may associate with the Paris Club Memorandum of Understanding. Around $1.4 million of debt service to Portugal has been rescheduled as per the DSSI. Pending confirmation, DSSI terms are not applied to eligible debt from other bilateral creditors (Equatorial Guinea and Angola) .  \nPUBLIC DEBT COVERAGE  \n1. For the purpose of the DSA for São Tomé and Príncipe, PPG debt includes central government’s and EMAE’s, an utility state-owned enterprise (SOE), debt.3 4 EMAE has been accumulating arrears over the years to its fuel supplier, ENCO, totaling over 26 percent of GDP at end-2019.5 6 Three state owned enterprises (SOEs) besides EMAE—ENAPORT, ENASA, and Correios—are not included in the analysis due to lack of reliable data.7 Nevertheless, the potential liabilities from these SOEs are included in the contingent liability stress test assuming the default value of 2 percent of GDP. Contingent liabilities from financial markets are also set at their default value of 5 percent of GDP. In addition, the contingent liability stress test further includes disputed debt of $30 million from Nigeria. The authorities maintain that its repayment was conditional on oil revenues, which have no near-term prospect for materialization. Finally, for the external DSA, the contingent liability shock also includes ENCO’s","cbCaivVWONd6eNBb","https://ap.wps.com/l/cbCaivVWONd6eNBb","pdf",425351,3,1,17,"English","en",105,"# Risk of debt distress\n## External debt distress and assessment\n## COVID-19 impact on indicators\n# Public debt coverage under baseline scenario\n## Definition of PPG and included subsectors\n## EMAE and contingent liabilities stress tests","[{\"question\":\"Why does São Tomé and Príncipe remain in external debt distress?\",\"answer\":\"Debt distress persists due to prolonged unsettled external arrears. Large domestic arrears of the loss-making state-owned utility company EMAE further underscore severe public-sector liquidity constraints.\"},{\"question\":\"Which debt indicators breach thresholds and when?\",\"answer\":\"The present value (PV) of external public and publicly guaranteed (PPG) debt-to-GDP and debt-to-exports ratios breach their thresholds in 2020 and 2021 due to the COVID-19 shock.\"},{\"question\":\"How is public and PPG debt coverage defined in the analysis?\",\"answer\":\"For the DSA baseline, PPG debt includes central government and EMAE (a state-owned utility enterprise) debt. Some other SOEs are excluded from the analysis due to limited data, but their potential liabilities are included in contingent liability stress tests.\"}]","Democratic Republic of São Tomé and Príncipe - Joint World Bank-IMF Debt Sustainability Analysis - February 2021 | PDF",1784483595,43,{"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},"democratic-republic-of-sao-tome-and-principe-joint-world-bank-imf-debt-sustainability-analysis-february-2021","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,51],{"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":20},"https://docshare.wps.com/document/research-report/",{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/democratic-republic-of-sao-tome-and-principe-joint-world-bank-imf-debt-sustainability-analysis-february-2021/110039/",4,{"url":52,"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","2026-07-29","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},"Why does São Tomé and Príncipe remain in external debt distress?","Question",{"text":76,"@type":77},"Debt distress persists due to prolonged unsettled external arrears. Large domestic arrears of the loss-making state-owned utility company EMAE further underscore severe public-sector liquidity constraints.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Which debt indicators breach thresholds and when?",{"text":81,"@type":77},"The present value (PV) of external public and publicly guaranteed (PPG) debt-to-GDP and debt-to-exports ratios breach their thresholds in 2020 and 2021 due to the COVID-19 shock.",{"name":83,"@type":74,"acceptedAnswer":84},"How is public and PPG debt coverage defined in the analysis?",{"text":85,"@type":77},"For the DSA baseline, PPG debt includes central government and EMAE (a state-owned utility enterprise) debt. Some other SOEs are excluded from the analysis due to limited data, but their potential liabilities are included in contingent liability stress tests.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"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":53,"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"]