[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110307-en":3,"doc-seo-110307-105":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},110307,4810365810221,"Aurora","https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d",8,"Research & Report","Republic of the Marshall Islands - Joint Bank-Fund Debt Sustainability Analysis - Key Findings","The 2023 Debt Sustainability Analysis for the Republic of the Marshall Islands finds debt is sustainable, yet the country faces a high risk of external debt distress. Key external debt indicators are expected to rise after FY2023 as compact grant financing expires and new multilateral borrowing increases, breaching thresholds over the 20-year horizon despite remaining below limits over 10 years. Vulnerabilities are amplified by non-debt shocks, export, depreciation, and commodity price risks, while grant-only status and the absence of current debt servicing risks mitigate near-term stress.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nLalita Moorty and Manuela Francisco (IDA) and Abdoul Aziz Wane and Martin Čihák Nada Choueiri (IMF) .  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| REPUBLIC OF THE MARSHALL ISLANDS\u003Cbr>JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\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 | Yes |\n\nThe 2023 Debt Sustainability Analysis (DSA)1 , 2 indicates that the Republic of the Marshall Islands (RMI)’s debt is sustainable but remains at high risk of debt distress. The ratios of the present value (PV) of public and publicly guaranteed (PPG) external debt to GDP, and PV of total PPG debt to GDP are projected to increase after FY2023 due to larger financing needs arising from the expected expiry of the Compact grants from the United States in FY2023 and an assumption that new financing from multilateral development banks (MDBs) will include more loans starting in FY2025—with World Bank financing becoming fully loans from FY2033 . While the two indicators remain below their respective thresholds in the 10-year forecast horizon in the DSA baseline scenario, they continue to rise and breach their respective thresholds over the 20-year forecast horizon and remain above them at the end of the horizon, indicating that the risk of debt distress remains high. The standardized stress tests and customized scenario also highlight the vulnerability of the debt position to other non-debt flows, exports, depreciation and commodity price shocks. Notwithstanding, there are good  \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) .  \n2 The Composite Indicator (CI) of 1.65 is based on the latest available CI information—April 2023 IMF World Economic Outlook (WEO) and the World Bank’s Country Policy and Institutional Assessment (CPIA) for 2021 indicating a “weak” capacity to carry debt (see ¶7) .  \nprospects that the RMI will maintain its grant-only status in the near term, which mitigates the risk of debt distress. Further, RMI does not currently face debt servicing risks. While a renewal of the Compact agreement is not in the current baseline, negotiations are ongoing and there are good prospects of an agreement. The implementation of fiscal and structural reforms, alongside gradual adjustment, would promote long-term fiscal sustainability and growth—including building in buffers in the event of emergencies and creating space for investment in climate adaptation.  \n1. The DSA for the RMI covers central government debt and government-guaranteed debt. The DSA classifies domestic and external debt based on the residency criteria, as the RMI uses the US dollar as its legal tender. The RMI’s debt is entirely denominated in US dollars, and the bulk is held by nonresidents, primarily on concessional terms from development partners. Data availability limits debt coverage, especially the lack of timely information on balance sheets for all other subsectors except the central government,3 reflecting capacity constraints that result in long time lags in the preparation of audited financial statements for state-owned enterprises (SOEs) . The risk from the limited data coverage is mitigated by the measures highlighted in the Box, as well as the inclusion of contingent liability and financial market risks in the DSA. The settings on these have been maintained at the default levels specified in the LIC-DSF template (see table below) . There are no Public-Private Partnerships (PPP) in the country at present.  \n\n|  |\n| --- |\n|  |\n|  |\n\n2. The RMI’s debt is mainly PPG external debt, which has been declining since the early 2000s.  \nThe PPG external debt in percent of GDP","cbCain3ARrEAxsvw","https://ap.wps.com/l/cbCain3ARrEAxsvw","pdf",1098455,1,18,"English","en",105,"# Overview of the 2023 DSA Findings\n## Risk ratings and assessment judgments\n# Debt dynamics and projections\n## External debt indicators and horizon differences\n# Stress testing and vulnerability channels\n## Shocks and non-debt flows\n# Mitigating factors and reform directions\n## Grant-only status, servicing risks, and fiscal reforms","[{\"question\":\"How does the 2023 DSA assess the Republic of the Marshall Islands’ overall debt sustainability risk?\",\"answer\":\"Debt is assessed as sustainable, but the overall risk of debt distress is high, including high risk of external debt distress. The standardized tests and scenarios show persistent vulnerability over the long horizon.\"},{\"question\":\"Why are external debt indicators projected to rise after FY2023?\",\"answer\":\"After FY2023, indicators are expected to increase due to larger financing needs linked to the expiry of United States Compact grants and assumptions that new multilateral development bank financing will rely more on loans starting in FY2025.\"},{\"question\":\"What factors help mitigate near-term debt distress risk in the DSA?\",\"answer\":\"Near-term mitigation comes from prospects of maintaining grant-only status and the fact that the country does not currently face debt servicing risks. Ongoing negotiations on Compact renewal and planned fiscal and structural reforms are also highlighted.\"}]",1784484816,45,{"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},"republic-of-the-marshall-islands-joint-bank-fund-debt-sustainability-analysis-key-findings","",{"@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/republic-of-the-marshall-islands-joint-bank-fund-debt-sustainability-analysis-key-findings/110307/",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},"How does the 2023 DSA assess the Republic of the Marshall Islands’ overall debt sustainability risk?","Question",{"text":74,"@type":75},"Debt is assessed as sustainable, but the overall risk of debt distress is high, including high risk of external debt distress. The standardized tests and scenarios show persistent vulnerability over the long horizon.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why are external debt indicators projected to rise after FY2023?",{"text":79,"@type":75},"After FY2023, indicators are expected to increase due to larger financing needs linked to the expiry of United States Compact grants and assumptions that new multilateral development bank financing will rely more on loans starting in FY2025.",{"name":81,"@type":72,"acceptedAnswer":82},"What factors help mitigate near-term debt distress risk in the DSA?",{"text":83,"@type":75},"Near-term mitigation comes from prospects of maintaining grant-only status and the fact that the country does not currently face debt servicing risks. Ongoing negotiations on Compact renewal and planned fiscal and structural reforms are also highlighted.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":45,"category_name":136,"show_sort_weight":105,"slug":137},19,"General","general"]