[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111010-en":3,"doc-seo-111010-105":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},111010,13056703020460,"Valentina","https://ap-avatar.wpscdn.com/avatar/be000253dac470eee5d?_k=1778207105932848923",8,"Research & Report","Marshall Islands - Joint World Bank-IMF Debt Sustainability Analysis - May 2021","The 2021 joint Debt Sustainability Analysis for the Republic of the Marshall Islands evaluates external debt dynamics under the World Bank-IMF framework and finds the debt sustainable while debt distress risk remains high. It projects rising PV ratios of public and publicly guaranteed external debt to GDP and exports in the near term from COVID-19 effects, with further increases after FY2023 linked to the expected expiry of Compact grants. Despite limited debt-service risk today, the report stresses weak fiscal buffers post-FY2023 and recommends grants continuity plus fiscal and structural reforms.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nREPUBLIC OF THE MARSHALL ISLANDS  \nJoint World Bank-IMF Debt Sustainability Analysis  \nMay 2021  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF) Approved by Marcello Estevão, Hassan Zaman (IDA) Thomas Helbling and  \nMartin Sommer (IMF)  \n\n| Marshall Islands: Joint Bank––Fund Debt Sustainability Analysis1 |  |\n| --- | --- |\n| Risk of external debt distress | High |\n| Overall risk of debt distress | High |\n| Granularity in the risk rating | Sustainable |\n| Application of judgment | No |\n\nThe 2021 Debt Sustainability Analysis (DSA) indicates that the Republic of the Marshall Islands (RMI)’s debt is sustainable but remains at high risk of debt distress. The ratios ofthe present value (PV) of public and publicly guaranteed (PPG) external debt to GDP and to exports are projected to increase in the near term due to the drag from the Covid-19 pandemic, and continue to rise after FY2023 due to larger financing needs arising from the expected expiry of the Compact grants in FY2023 .2 The two ratios breach their respective indicative thresholds in the second half of the 10-year forecast horizon in the DSA baseline scenario, indicating that the risk of debt distress remains high. The standardized stress tests and customized scenario highlight the vulnerability of the debt position to plausible shocks (e.g. non-debt flows and natural disasters) . Although RMI does not currently face debt servicing risks, helped by government revenue from fishing licenses and astable flow of the U.S. Compat grants until FY2023, the lack of fiscal buffers after FY2023 calls for a fiscal reform strategy. Containing the risk of debt distress requires continuation of grants to support the country’s large development needs, and implementation of fiscal and structural reforms to promote fiscal sustainability and growth. Long-term debt sustainability hinges on continued donor grants together with a fiscal adjustment of 5-6 percentage points of GDP from FY2022 to FY2035 to stabilize the PV ofPPG external debt to GDP ratio below 40 percent.  \n1 The DSA follows the IMF and World Bank Staff Guidance Note on the Application of the Joint Fund-Bank Debt Sustainability Framework (DSF) for Low-Income Countries (LICs) (February 2018) . Marshall Islands’ debt-carrying capacity remains weak as its Composite Indicator is 1.54, which is based on the 2020 October WEO and the 2019 CPIA released in July 2020.  \n2 The fiscal year ends on September 30.  \nPUBLIC DEBT COVERAGE  \n1. The DSAforthe RMI covers central government debt and government-guaranteed debt3.  \nThe DSA classifies domestic and external debt based on the residency criteria, as local currency denominated debt (i.e., debt in US dollar, the legal tender in RMI) is held almost entirely by nonresidents. Data availability limits debt coverage, especially the lack of timely information on balance sheets for all other subsectors except the central government. Ongoing and planned technical assistance aim to provide improvement overtime by reviewing the government financial statistics and greater data collection of state-owned enterprises (SOEs)4. For example, the Pacific Technical Assistance Center (PFTAC) ofthe IMF is currently supporting the authorities to compile GFS for the general government. Sor far, there is no Public-Private Partnerships (PPP) in the country.  \nPublic Debt Coverage and the Magnitude of the Contingent Liability Tailored Stress Test  \n\n| 1 | Subsectors of the public sector | Sub-sectors covered |\n| --- | --- | --- |\n|  | Central government | X |\n| 2 | State and local government |  |\n| 3 | Other elements in the general government |  |\n| 4 | o/w: Social security fund |  |\n| 5 | o/w: Extra budgetary funds (EBFs) |  |\n| 6 | Guarantees (to other entities in the public and private sector, including to SOE","cbCaij6qVgs9MIzz","https://ap.wps.com/l/cbCaij6qVgs9MIzz","pdf",664068,1,16,"English","en",105,"# Executive Summary\n## Debt Distress Risk Assessment\n## Key Assumptions and Scenarios\n# Coverage of Public Debt\n## Residency and Data Limitations\n## Public-Private Partnerships and Contingent Liabilities\n# Background on Debt Developments\n## External Debt Trends Since Early 2000s\n## Composition of PPG External Debt","[{\"question\":\"What overall conclusion does the 2021 Debt Sustainability Analysis reach for the Marshall Islands?\",\"answer\":\"It concludes that the Republic of the Marshall Islands’ debt is sustainable, but the overall risk of debt distress remains high.\"},{\"question\":\"Why are the debt-to-GDP and debt-to-exports indicators projected to rise in the near term?\",\"answer\":\"They are expected to increase due to the drag from the COVID-19 pandemic and then continue rising after FY2023 as financing needs grow with the expected expiry of Compact grants.\"},{\"question\":\"What does the report say about current debt servicing risks and future vulnerabilities?\",\"answer\":\"It notes that the country does not currently face debt servicing risks, supported by government revenue and stable U.S. Compact grant flows until FY2023, but highlights the lack of fiscal buffers after FY2023.\"}]",1784488131,40,{"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},"marshall-islands-joint-world-bank-imf-debt-sustainability-analysis-may-2021","",{"@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/marshall-islands-joint-world-bank-imf-debt-sustainability-analysis-may-2021/111010/",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},"What overall conclusion does the 2021 Debt Sustainability Analysis reach for the Marshall Islands?","Question",{"text":74,"@type":75},"It concludes that the Republic of the Marshall Islands’ debt is sustainable, but the overall risk of debt distress remains high.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why are the debt-to-GDP and debt-to-exports indicators projected to rise in the near term?",{"text":79,"@type":75},"They are expected to increase due to the drag from the COVID-19 pandemic and then continue rising after FY2023 as financing needs grow with the expected expiry of Compact grants.",{"name":81,"@type":72,"acceptedAnswer":82},"What does the report say about current debt servicing risks and future vulnerabilities?",{"text":83,"@type":75},"It notes that the country does not currently face debt servicing risks, supported by government revenue and stable U.S. Compact grant flows until FY2023, but highlights the lack of fiscal buffers after 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