[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110040-en":3,"doc-seo-110040-105":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},110040,7971461741311,"Ophelia","https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826",8,"Research & Report","Liberia - Joint World Bank-IMF Debt Sustainability Analysis - December 2020","Joint World Bank-IMF Debt Sustainability Analysis assesses Liberia’s debt outlook as moderate risk of external debt distress and high risk of overall public debt distress. The assessment highlights limited space to absorb shocks and an extended breach of the present value of public debt-to-GDP. Public debt is still judged sustainable because projected present values of public debt-to-GDP and debt-to-revenue decline, while high ratios largely reflect central bank debt with relatively low interest rates not discounted in the present value calculations.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nLIBERIA  \nJoint World Bank-IMF Debt Sustainability Analysis  \nDecember 2020  \nPrepared Jointly by the staffs ofthe International Development Association.1 (IDA)  \nand the International Monetary Fund (IMF) Approved by Marcello Estevão (IDA) and Celine Allard (IMF)  \n\n| Liberia: Joint Bank-Fund Debt Sustainability Analysis2 |  |\n| --- | --- |\n| Risk of external debt distress | Moderate |\n| Overall risk of debt distress | High |\n| Granularity in the risk rating | Limited space to absorb shocks |\n| Application of judgment | No |\n\nThe Debt Sustainability Analysis (DSA) continues to assess Liberia at moderate risk of external debt distress and high risk of overall public debt distress, with very limited space to accommodate shocks and an extended breach of the Present Value (PV) of public debt-to-GDP ratio. However, public debt is assessed to be sustainable as (i) both the PV of public debt-to-GDP and PV of debtto-revenue ratios are projected to be on a downward trend and (ii) the high PV of public debt ratios largely reflect debt to the central bank, for which the interest rate is relatively low but is not discounted in the PV calculations. The rollover risk of domestic debt is low as most of the domestic debt is the government’s consolidated debt to the CBL. To keep debt distress vulnerabilities contained, it will be important to maintain fiscal discipline and rely on concessional financing.  \n1Debt coverage has remained the same as in the previous DSA.  \n2Liberia’s debt-carrying capacity based on the Composite Indicator (CI), which is based on the October 2020 WEO and the 2019 CPIA, is assessed as weak. The CI score is 2.502.  \nPUBLIC DEBT COVERAGE  \n1. The DSA covers central government debt, central government guaranteed debt, and central bank debt contracted on behalf of the government (Text Table 1) .3 The bulk of StateOwned Enterprise (SOE) debt is guaranteed by the central government and is included in DSA, as Liberian SOEs are unable to secure external funding without such a guarantee. Government borrowing from the Central Bank of Liberia (CBL) , a US$487 million restructured and consolidated debt at the inception of the ECF arrangement, is included in this current DSA analysis. Nearly, half of this amount is in legacy debt from the war time denominated in U.S. dollars, and the other half is in the form of bridge loans, suspense account, and on-lending of IMF budget support. This debt has the interest rate at 4 percent with repayments starting in 2029. In addition, the DSA includes $65 million sovereign bonds issued to banks in May 2019; about $10 million of direct liabilities with commercial banks, $45 million of contractors’ liabilities representing contractors’ defaulted payments with commercial banks for government contracts in the past, and $10 million for the rubber plant association representing debt assumption by the government with expectation of repayment of the assumed liability. The largest debt to SOEs is a World Bank loan to the Liberia Electricity Corporation (LEC) for the rehabilitation of Mt. Coffee hydropower station. 4 Local governments’ operations are small and unable to secure external funding without a central government guarantee. Other elements of the public sector debt are not included in the analysis because of data constraints.5  \nText Table 1. Liberia: Coverage of Public Sector Debt  \n\n|  |  Subsectors of the public sector Check box \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\u003Cbr>X\u003Cbr>XX |\n| --- | --- |\n| 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  |\n\nPublic debt coverage and the magnitude of th","cbCait5kaGKyrQzX","https://ap.wps.com/l/cbCait5kaGKyrQzX","pdf",458509,2,1,19,"English","en",105,"# Summary Assessment\n## Debt distress risk ratings\n## Rationale for public debt sustainability\n# Public Debt Coverage\n## Scope of debt included\n## Central bank and sovereign bond components\n## Other liabilities and data constraints\n# Contingent Liability Stress Test\n## Coverage adjustments and shock settings\n## Default and deviations from default assumptions","[{\"question\":\"What are the overall debt distress risk ratings for Liberia in this analysis?\",\"answer\":\"The analysis rates external debt distress risk as moderate, while overall public debt distress risk is high.\"},{\"question\":\"Why is public debt still considered sustainable despite the high risk rating?\",\"answer\":\"Projected present values of public debt-to-GDP and debt-to-revenue follow a downward trend, and elevated present value ratios largely reflect central bank debt with relatively low interest rates that is not discounted in the calculations.\"},{\"question\":\"What debt components are covered in the Debt Sustainability Analysis?\",\"answer\":\"The DSA covers central government debt, central government guaranteed debt, and central bank debt contracted on behalf of the government, including certain state-owned enterprise debt that is centrally guaranteed.\"}]","Liberia - Joint World Bank-IMF Debt Sustainability Analysis - December 2020 | PDF",1784483599,48,{"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},"liberia-joint-world-bank-imf-debt-sustainability-analysis-december-2020","",{"@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/liberia-joint-world-bank-imf-debt-sustainability-analysis-december-2020/110040/",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","2026-07-30","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},"What are the overall debt distress risk ratings for Liberia in this analysis?","Question",{"text":76,"@type":77},"The analysis rates external debt distress risk as moderate, while overall public debt distress risk is high.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Why is public debt still considered sustainable despite the high risk rating?",{"text":81,"@type":77},"Projected present values of public debt-to-GDP and debt-to-revenue follow a downward trend, and elevated present value ratios largely reflect central bank debt with relatively low interest rates that is not discounted in the calculations.",{"name":83,"@type":74,"acceptedAnswer":84},"What debt components are covered in the Debt Sustainability Analysis?",{"text":85,"@type":77},"The DSA covers central government debt, central government guaranteed debt, and central bank debt contracted on behalf of the government, including certain state-owned enterprise debt that is centrally guaranteed.","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":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":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":22,"doc_module":4,"doc_module_name":47,"category_name":137,"show_sort_weight":107,"slug":138},"General","general"]