[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111877-en":3,"doc-seo-111877-105":29,"detail-sidebar-cat-0-en-105":91},{"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":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},111877,13056703019662,"Evangeline","https://ap-avatar.wpscdn.com/avatar/be000253a8e92610077?_k=1778726343310543188",8,"Research & Report","Sierra Leone - Joint Bank-Fund Debt Sustainability Analysis - DSA Summary","Sierra Leone’s public debt is assessed as sustainable, but external and overall debt distress risks remain high, unchanged from the June 2023 DSA. Large fiscal overruns and a sharp depreciation of the leone weakened both solvency and liquidity indicators, pushing key thresholds further out. The analysis highlights a need for a larger, more frontloaded fiscal adjustment, continued reliance on concessional financing and grants, and a growth recovery. It also notes declining debt indicators over the medium to long term, conditional on policy implementation.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nAbebe Adugna and Manuela Francisco (IDA) Montfort Mlachila and Jarkko Turunen (IMF) .  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| SIERRA LEONE: 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 | No |\n\nSierra Leone’s public debt is sustainable but risks of external and overall debt distress are high, unchanged from the previous DSA published in June 2023.1 Last year’s large fiscal overruns and the sharp depreciation of the leone have resulted in a deterioration of both solvency and liquidity indicators. The external debt service-to-revenue ratio and the PV of the public debt-to-GDP ratio exhibit larger breaches of their respective thresholds. In addition, the overall debt-service to revenue ratio and the PV of external debt-to-GDP indicator have shifted up notably. A larger and more frontloaded fiscal adjustment is now urgently needed to ensure that debt remains sustainable. All debt indicators are on a declining trend over the medium to long-term. However, this is predicated on steadfast implementation of the planned fiscal adjustment, continued reliance on concessional financing and grants, and the projected growth recovery. Efforts to seek further grant financing and lengthen the maturity structure of debt remain key as debt service ratios and gross financing needs will remain elevated over the medium and long-term. Domestic rollover risks are attenuated by high interest margins, limited alternative investment options for domestic banks and the authorities’ commitment to limit future domestic borrowing. Sierra Leone is susceptible to growth and exchange rate shocks as well as fiscal slippages, all of which present downside risks to the debt outlook.  \n1 Sierra Leone’s debt-carrying capacity remains rated “medium” with a composite indicator value of 2.73 based on the April 2023 IMF’s World Economic Outlook (WEO) and the 2022 World Bank’s Country Policy and Institutional Assessment (CPIA) .  \n1. Public debt coverage remains the same as in the previous DSA. The debt stock includes central government public and publicly guaranteed debts on a residency basis (Text Table 1) . The DSA also includes the latest estimate of the consolidated stock of domestic payment arrears. The government is working, with the support of development partners including the World Bank through the Sustainable Development Finance Policy (SDFP), to improve its financial and debt management system, and to enhance the accounting and timely reporting of public debt , including the debts of state-owned enterprises (SOEs) and self-accounting-bodies. This DSA uses the debt stock data as of end-2022.  \n|  |  Subsectors of the public sector  Sub-sectors covered \u003Cbr>Central government X\u003Cbr>State and local government\u003Cbr>Other elements in the general government\u003Cbr>o/w: Social security fund X\u003Cbr>o/w: Extra budgetary funds (EBFs)\u003Cbr>Guarantees (to other entities in the public and private sector, including to SOEs) X Central bank (borrowed on behalf of the government) X Non-guaranteed SOE debt |\n| --- | --- |\n| 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  |\n\nNote: Blank indicates there is no data.  \n\n|  |  |  |  |\n| --- | --- | --- | --- |\n| 1. The country’s coverage of public debt | The central government plus social security, central bank, government-guaranteed debt |  |  |\n|  | Default\u003Cbr>Used for the Analysis\u003Cbr>Reasons for deviations from the default setting |  |  |\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\u003Cbr>5 percent of GDP is the minimum value) | 0 percent of GDP\u003Cbr>2 percent of GDP\u003Cbr>35 percent of\u003Cbr>PPP","cbCaiinVrzmpJYHj","https://ap.wps.com/l/cbCaiinVrzmpJYHj","pdf",751203,1,20,"English","en",105,"# Key Risk Ratings\n## External and overall risk conclusions\n## Judgment and rating granularity\n# Macroeconomic Drivers and Threshold Breaches\n## Fiscal overruns and exchange-rate depreciation\n## Solvency and liquidity deterioration\n# Debt Dynamics and Scenario Conditions\n## Medium to long-term declining trends\n## Role of concessional financing and grants\n# Contingent Liabilities and Coverage\n## Public debt coverage and included subsectors\n## Contingent liability stress test assumptions\n# Debt Composition and Stock Developments\n## End-2022 trend and GDP ratios\n## External vs domestic borrowing and T-bills","[{\"question\":\"What are the overall and external debt distress risk ratings for Sierra Leone?\",\"answer\":\"The risk of external debt distress is rated High, and the overall risk of debt distress is also High. These ratings remain unchanged from the previous DSA published in June 2023.\"},{\"question\":\"Which factors caused deterioration in solvency and liquidity indicators?\",\"answer\":\"Last year’s large fiscal overruns and the sharp depreciation of the leone deteriorated solvency and liquidity indicators. Key ratios such as the external debt service-to-revenue and PV of debt-to-GDP breached their respective thresholds more than before.\"},{\"question\":\"What conditions are required for debt sustainability to hold over the medium to long term?\",\"answer\":\"Sustainability depends on steadfast implementation of the planned fiscal adjustment, continued reliance on concessional financing and grants, and a projected growth recovery. The document also emphasizes efforts to seek more grant financing and lengthen debt maturity.\"}]",1784492112,50,{"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":86,"head_meta":88,"extra_data":90,"updated_unix":27},"sierra-leone-joint-bank-fund-debt-sustainability-analysis-dsa-summary","",{"@graph":35,"@context":85},[36,53,68],{"@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/sierra-leone-joint-bank-fund-debt-sustainability-analysis-dsa-summary/111877/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What are the overall and external debt distress risk ratings for Sierra Leone?","Question",{"text":75,"@type":76},"The risk of external debt distress is rated High, and the overall risk of debt distress is also High. These ratings remain unchanged from the previous DSA published in June 2023.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which factors caused deterioration in solvency and liquidity indicators?",{"text":80,"@type":76},"Last year’s large fiscal overruns and the sharp depreciation of the leone deteriorated solvency and liquidity indicators. Key ratios such as the external debt service-to-revenue and PV of debt-to-GDP breached their respective thresholds more than before.",{"name":82,"@type":73,"acceptedAnswer":83},"What conditions are required for debt sustainability to hold over the medium to long term?",{"text":84,"@type":76},"Sustainability depends on steadfast implementation of the planned fiscal adjustment, continued reliance on concessional financing and grants, and a projected growth recovery. The document also emphasizes efforts to seek more grant financing and lengthen debt maturity.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,114,119,122,126,129,133],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":45,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":45,"category_name":112,"show_sort_weight":28,"slug":113},6,"Technology","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":21,"slug":125},9,"Religion & Spirituality","religion-spirituality",{"id":21,"doc_module":4,"doc_module_name":45,"category_name":127,"show_sort_weight":21,"slug":128},"World Cup","world-cup",{"id":130,"doc_module":4,"doc_module_name":45,"category_name":131,"show_sort_weight":130,"slug":132},10,"Lifestyle","lifestyle",{"id":134,"doc_module":4,"doc_module_name":45,"category_name":135,"show_sort_weight":106,"slug":136},19,"General","general"]