[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109924-en":3,"doc-seo-109924-105":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},109924,1374391974564,"Clementine","https://ap-avatar.wpscdn.com/avatar/14000253aa45c000a9e?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779874745381141002",8,"Research & Report","Nicaragua - Joint World Bank-IMF Debt Sustainability Analysis - February 2020","Nicaragua’s joint World Bank–IMF Debt Sustainability Analysis (February 2020) applies the updated LIC debt sustainability framework to assess risks to external and public debt distress. External debt distress risk is rated moderate because buffer capacity is limited. Under the baseline, external debt burden indicators remain below thresholds, yet several standardized stress tests breach them, including export contraction, depreciation, combined shocks, and a contingent-liability shock linked to Venezuela cooperation. Overall public debt risk is moderate with threshold breaches under most stress scenarios, supporting stronger external and fiscal buffers.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nNICARAGUA  \nJoint World Bank-IMF Debt Sustainability Analysis  \nFebruary 2020  \nPrepared jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão (IDA), Aasim M. Husain and Maria Gonzalez (IMF)  \n\n| Nicaragua: 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 to absorb shocks |\n| Application of judgment | No |\n\nUnder the updated LIC debt sustainability assessment framework, Nicaragua’s risk of external debt distress is assessed as moderate with limited space to absorb shocks. Over the 10-year projection horizon, all external debt burden indicators under the baseline scenario remain below the threshold, but the present value (PV) of public and publicly guaranteed debt (PPG) external debt-to-GDP ratio breaches the threshold under three standardized stress scenarios: an export contraction shock, a depreciation shock and a combination of external shocks; and the realization of a contingent liability tailored shock related to the external cooperation with Venezuela. The overall risk of public debt distress is also assessed as moderate. The PV of public debt-to-GDP ratio is projected to be below the threshold under the baseline scenario, but it is projected to surpass the threshold under most standardized stress scenarios, notably lower GDP growth, and realization of contingent liability shocks. Therefore, strengthening both external and fiscal buffers is highly desirable.  \nPUBLIC DEBT COVERAGE  \n1. Nicaragua’s debt statistics are reported at the consolidated public sector (CPS) level. The public debt definition used in this debt sustainability analysis (DSA) covers the consolidated debt of the budgetary central government, decentralized entities, the state-owned enterprises guaranteed debt, and the Central Bank of Nicaragua (CBN) (Text Table 1).1,2 Consistent with previous DSAs in 2013, 2015 and 2017, this DSA assumes the delivery of expected Heavily Indebted Poor Countries (HIPC) debt relief by Non-Paris club creditors that have yet to deliver it (see Paragraph 5).  \n2. The DSA is conducted on a residency basis. Pursuant to the LIC DSF Guidance Note, foreign holdings of local currency debt issued domestically are now treated as external debt because servicing andrepaying this debt requires net resource transfers abroad. In the case of Nicaragua, there are no foreign holdings of local currency debt issued domestically as in the 2017 DSA.  \nText Table 1. Nicaragua: Public Debt Coverage Under the Baseline Scenario  \n\n|  | Subsectors of the public sector | Sub-sectors covered |\n| --- | --- | --- |\n|  | 1 Central government | X |\n|  | 2 State and local government |  |\n|  | 3 Other elements in the general government |  |\n|  | 4 o/w: Social security fund | X |\n|  | 5 o/w: Extra budgetary funds (EBFs) |  |\n|  | 6 Guarantees (to other entities in the public and private sector, including to SOEs) | X |\n|  | 7 Central bank (borrowed on behalf of the government) | X |\n|  | 8 Non-guaranteed SOE debt |  |\n\n\n|  | 1 The country's coverage of public debt | The central government plus social security, central bank, government-guaranteed debt |  |  |\n| --- | --- | --- | --- | --- |\n|  |  |  | Default | Used for the analysis Reasons for deviations from the default settings |\n|  | 2 Other elements of the general government not captured in 1.\u003Cbr>3 SoE's debt (guaranteed and not guaranteed by the government) 1/\u003Cbr>4 PPP\u003Cbr>5 Financial market (the default value of 5 percent of GDP is the minimum value) Total (2+3+4+5) (in percent of GDP) | 0\u003Cbr>2\u003Cbr>35\u003Cbr>5 | percent of GDP\u003Cbr>percent of GDP\u003Cbr>percent of PPP stock\u003Cbr>percent of GDP | 0.0 2.0 1.6 5.0\u003Cbr>8.6 |\n|  |  |  |  |  |\n\n1/ The de","cbCaitLFlACw3FKe","https://ap.wps.com/l/cbCaitLFlACw3FKe","pdf",446270,4,1,20,"English","en",105,"# Key Risk Findings\n## External Debt Distress Assessment\n## Public Debt Distress Assessment\n# Public Debt Coverage Framework\n## Coverage Scope and Debt Definition\n## Residency-Based Treatment of Debt\n# Debt Background and Recent Developments\n## 2018 Deterioration in the Economic Outlook","[{\"question\":\"What is Nicaragua’s assessed risk of external debt distress under the framework?\",\"answer\":\"Moderate, with limited space to absorb shocks.\"},{\"question\":\"Which scenarios cause external debt burden indicators to breach thresholds?\",\"answer\":\"An export contraction shock, a depreciation shock, a combination of external shocks, and a tailored contingent-liability shock related to external cooperation with Venezuela.\"},{\"question\":\"How does the analysis rate overall risk of public debt distress?\",\"answer\":\"Moderate, with the PV of the public debt-to-GDP ratio projected to exceed thresholds under most standardized stress scenarios, especially those involving lower GDP growth and contingent liabilities.\"}]","Nicaragua - Joint World Bank-IMF Debt Sustainability Analysis - February 2020 | PDF",1784483061,50,{"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},"nicaragua-joint-world-bank-imf-debt-sustainability-analysis-february-2020","",{"@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/nicaragua-joint-world-bank-imf-debt-sustainability-analysis-february-2020/109924/",{"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","2026-07-29","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},"What is Nicaragua’s assessed risk of external debt distress under the framework?","Question",{"text":76,"@type":77},"Moderate, with limited space to absorb shocks.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Which scenarios cause external debt burden indicators to breach thresholds?",{"text":81,"@type":77},"An export contraction shock, a depreciation shock, a combination of external shocks, and a tailored contingent-liability shock related to external cooperation with Venezuela.",{"name":83,"@type":74,"acceptedAnswer":84},"How does the analysis rate overall risk of public debt distress?",{"text":85,"@type":77},"Moderate, with the PV of the public debt-to-GDP ratio projected to exceed thresholds under most standardized stress scenarios, especially those involving lower GDP growth 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},[94,98,102,106,111,115,120,123,127,130,134],{"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":30,"slug":114},6,"Technology","technology",{"id":116,"doc_module":4,"doc_module_name":47,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"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":22,"slug":126},9,"Religion & Spirituality","religion-spirituality",{"id":22,"doc_module":4,"doc_module_name":47,"category_name":128,"show_sort_weight":22,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":47,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":47,"category_name":136,"show_sort_weight":107,"slug":137},19,"General","general"]