[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109907-en":3,"doc-seo-109907-105":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},109907,1374391974564,"Clementine","https://ap-avatar.wpscdn.com/avatar/14000253aa45c000a9e?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779874745381141002",8,"Research & Report","Joint World Bank-IMF Debt Sustainability Analysis - July 2020 - Lesotho","This Debt Sustainability Analysis assesses the Kingdom of Lesotho’s risk of external and overall debt distress as moderate, even as the COVID shock affected outcomes. Results show rapid debt growth over the past three years, especially domestically, alongside exchange-rate depreciation in early 2020 and additional COVID mitigation financing needs. The analysis highlights pension-fund financing gaps, the need for buffers to manage external shocks, conservative borrowing, and limits in domestic market absorption, including undersubscription in domestic auctions.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nKINGDOM OF LESOTHO  \nJoint World Bank-IMF Debt Sustainability Analysis  \nJuly 2020  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF) Approved by Marcello Estevão (IDA), D. Robinson and Bjoern Rother (IMF)  \n\n| 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 | Limited space |\n| Application of judgment | No |\n\nThis DSA1 assesses Lesotho’s risk of external and overall debt distress at moderate despite the impact of the COVID shock, but risks to debt sustainability have risen since the last DSA.2 The overall risk of debt distress is also assessed to be moderate. The moderate risk tool suggests limited space to absorb shocks. The results ofthe DSA highlight the rapid increase in debt levels over the past 3 years, particularly on the domestic side, as well as the impact of the large depreciation of the exchange rate against the US dollar in early 2020 and additional financing needed for COVID mitigation measures. The results also point to the importance of addressing financing shortfalls of the pension fund, building buffers to mitigate external shocks, and maintaining a conservative approach to debt contraction. Recent undersubscription of domestic debt auctions underscores the limited absorption capacity of domestic markets. Controlling current expenditure will be essential to reduce pressure to expand domestic issuance, restore external balances, and mitigate vulnerabilities. Finally, the authorities are encouraged to carefully vet new investment projects to ensure that new borrowing is productive.  \n1 This DSA updates the previous Joint DSA from April 2019 (IMF Country Report No. 19/113) . This DSA follows the Guidance Note on the Bank-Fund Debt Sustainability Framework for Low-Income Countries (December 26, 2017) .  \n2 Lesotho’s debt carrying capacity is assessed to be medium based on the composite indicator of 3.02 as described in this DSA.  \nPUBLIC DEBT COVERAGE  \n1. Lesotho’s public debt data covers the central government, the central bank, and government-guaranteed debts. Debt coverage is similar to the previous DSA (Text Table A.1.1). While coverage does not include extrabudgetary units such as the Road Fund, the contingent liability of the pension fund, estimated between 10 and 20 percent of GDP, is included in the contingent liability stress test. Increasing participant contributions would gradually reduce the unfunded liabilities. Guaranteed SOE debt is covered by debt data and preliminary estimates on non-guaranteed SOE debt are also included in the analysis. Guaranteed debt related to COVID stimulus measures are also included. Since those estimates are not comprehensive, another 2 percent of GDP is added to the contingent liability stress test. The contingent liability stress test also includes 5 percent of GDP for a financial market shock and 35 percent of the PPP capital stock, which is estimated to be 3.2 percent of GDP (Text Table A.1.2). External debt is defined based on currency-criterion as there is no foreign holdings of local-currency debt. The authorities will begin publishing outstanding debt, including guarantees, of SOEs on the website of the Ministry of Finance in agreement with the World Bank under the Sustainable Development Financing Policy (SDFP).  \n\n| Text Table A.1.1. Lesotho: Coverage of Public Sector Debt and Design of the Contingent Liability\u003Cbr>Stress Test |  |  |  |\n| --- | --- | --- | --- |\n|  | 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 | Subsectors of the public sector Sub-sectors covered |  |\n|  |  | Central government X\u003Cbr>State and local government\u003Cbr>Other elements in the general government o/w: Social security fund\u003Cbr>o/w: Extra budgetary funds (EBFs)","cbCaisCUFCaxwB32","https://ap.wps.com/l/cbCaisCUFCaxwB32","pdf",497112,2,1,16,"English","en",105,"# Executive Summary\n## Debt distress risk assessment\n## Key drivers and policy priorities\n# Public Debt Coverage\n## Coverage scope and contingent liabilities\n# Shocks in the Contingent Liabilities Stress Test\n## Default, SOE, PPP, and financial market shocks\n# Public Debt Background\n## Recent debt dynamics and creditor structure","[{\"question\":\"How does the analysis rate Lesotho’s risk of external and overall debt distress?\",\"answer\":\"Both external and overall risks of debt distress are rated as moderate.\"},{\"question\":\"What factors contributed to the rise in Lesotho’s debt vulnerabilities since the previous analysis?\",\"answer\":\"The assessment points to rapid debt level increases over the past three years, COVID-related financing needs, the early-2020 exchange-rate depreciation, and continued domestic borrowing pressures.\"},{\"question\":\"What policy areas does the analysis emphasize to support debt sustainability?\",\"answer\":\"It stresses addressing pension-fund financing shortfalls, building buffers for external shocks, maintaining a conservative approach to debt contraction, controlling current expenditure, and vetting new investment projects to ensure productive borrowing.\"}]","Joint World Bank-IMF Debt Sustainability Analysis - July 2020 - Lesotho | PDF",1784482975,40,{"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},"joint-world-bank-imf-debt-sustainability-analysis-july-2020-lesotho","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,48,51],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":20},"https://docshare.wps.com/document/","Document",{"item":49,"name":12,"@type":44,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/joint-world-bank-imf-debt-sustainability-analysis-july-2020-lesotho/109907/",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","2026-07-31","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 does the analysis rate Lesotho’s risk of external and overall debt distress?","Question",{"text":76,"@type":77},"Both external and overall risks of debt distress are rated as moderate.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"What factors contributed to the rise in Lesotho’s debt vulnerabilities since the previous analysis?",{"text":81,"@type":77},"The assessment points to rapid debt level increases over the past three years, COVID-related financing needs, the early-2020 exchange-rate depreciation, and continued domestic borrowing pressures.",{"name":83,"@type":74,"acceptedAnswer":84},"What policy areas does the analysis emphasize to support debt sustainability?",{"text":85,"@type":77},"It stresses addressing pension-fund financing shortfalls, building buffers for external shocks, maintaining a conservative approach to debt contraction, controlling current expenditure, and vetting new investment projects to ensure productive borrowing.","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},[94,98,102,106,111,116,120,123,128,131,135],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":20,"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":30,"slug":119},7,"Healthcare","healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":47,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":47,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":47,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":47,"category_name":137,"show_sort_weight":107,"slug":138},19,"General","general"]