[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110547-en":3,"doc-seo-110547-105":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},110547,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Sierra Leone - Joint Bank-Fund Debt Sustainability Analysis - High risk","Joint IDA and IMF debt sustainability analysis for Sierra Leone concludes that the risk of external and overall debt distress remains high, even as debt is assessed as sustainable. Elevated risks stem from fiscal slippages and external factors, requiring a larger, more frontloaded fiscal adjustment to meet program objectives. While debt carrying capacity is upgraded to medium, key external debt indicators and PV of public debt-to-GDP ratios breach sustainability thresholds. Short-term domestic T-Bill financing raises rollover risks, mitigated by limited alternatives and commitments to constrain future borrowing. Sustaining sustainability depends on continued concessional support, fiscal adjustment, improved public financial management, expenditure prioritization, and strengthened revenue and structural reforms.","Public Disclosure Authorized  \nApproved by:  \nAbebe Adugna and Marcello Estevão (IDA); and Montfort Mlachila and Anna Ilyina (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \nPub lic Disc losure Authorized  \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 risk of external and overall debt distress remains high, but debt is sustainable. Fiscal slippages and external factors have increased the risks around the baseline, as a larger and more frontloaded fiscal adjustment is now required to achieve the program objectives. Although Sierra Leone’s debt carrying capacity has been upgraded to medium compared to the previous DSA report, one external debt burden indicator and the PV of public debt-to-GDP ratio exhibit sustained breaches of their respective sustainability thresholds. A heavy reliance on short-term domestic financing (T-Bills) creates potential rollover risks, as reflected in persistently elevated debt service ratios and gross financing needs over the medium-and long-term. Domestic rollover risks are mitigated by limited alternative investment options for domestic banks and the authorities’ commitment to limit future domestic borrowing. That said, a lengthening of the maturity structure of domestic debt (via active liability management operations) is critical to reduce refinancing risks. Sierra Leone’s debt is sustainable as all the debt indicators remain on a declining trend over the medium-to longterm. This assessment is predicated on the authorities’ ambitious fiscal adjustment and continued reliance on concessional financing and grants, and moderately high growth rates. Maintaining debt sustainability requires sustained fiscal adjustment underpinned by strengthened public financial management, effective expenditure prioritization, redoubling structural and revenue mobilization reforms.  \n1. The DSA covers known sources of public debt (Text Table 1) . As in earlier DSAs, the debt stock includes central government public and publicly-guaranteed debts. 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, to improve its financial and debt management systems, and to enhance the accounting and timely reporting of public debt, including those of state-owned enterprises (SOEs) and selfaccounting-bodies.  \n\n|  |  |  |  |\n| --- | --- | --- | --- |\n|  |  |  Subsectors of the public sector  Sub-sectors covered \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>\u003Cbr>X\u003Cbr>X\u003Cbr>XX |  |\n|  | 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  |  |\n|  |  |  |  |\n\n2. The contingent liability stress test accounts for vulnerabilities associated with SOEs and financial market risks (Text Table 2) . The contingent liability for SOE debt is set at 7 percent of GDP, higher than the default 2 percent of GDP, reflecting the authorities’ estimate of indebtedness of SOEs and selfaccounting bodies, which is not captured in the baseline. Contingent liabilities from financial markets are set at the standard minimum value of 5 percent of GDP, which represents the average fiscal cost of a financial crisis in LICs since 1980. The contingent liability of other elements of the general government is set at 0 percent of GDP because the baseline reflects estimated domestic arrears. Overall, total contingent liabilities are estimated at 12 percent of GDP, as in the previous DSA.  \n\n|  |  |  |  |\n| -","cbCaieFrtnosIGVr","https://ap.wps.com/l/cbCaieFrtnosIGVr","pdf",790333,3,1,20,"English","en",105,"# Risk Assessment\n## External and overall debt distress\n## Sustainability thresholds and breaches\n# Debt Coverage and Contingent Liabilities\n## Public debt coverage\n## Contingent liability stress test\n# COVID-19 and Debt Dynamics\n## Public debt trends 2020–2023\n# External Debt Composition\n## PPG external debt outlook 2022","[{\"question\":\"What is the overall conclusion of the joint debt sustainability analysis for Sierra Leone?\",\"answer\":\"The analysis finds that the risk of external and overall debt distress is high, but debt remains sustainable under the baseline assumptions.\"},{\"question\":\"Why do fiscal slippages and external factors increase Sierra Leone’s debt distress risks?\",\"answer\":\"They raise the need for a larger and more frontloaded fiscal adjustment to achieve program objectives and keep debt indicators within sustainability bounds.\"},{\"question\":\"How do short-term domestic financing instruments affect rollover risks?\",\"answer\":\"Heavy reliance on short-term T-Bills creates potential rollover risks, reflected in persistently elevated debt service ratios and gross financing needs over the medium and long term.\"}]","Sierra Leone - Joint Bank-Fund Debt Sustainability Analysis - High risk | PDF",1784485942,50,{"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},"sierra-leone-joint-bank-fund-debt-sustainability-analysis-high-risk","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,51],{"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":20},"https://docshare.wps.com/document/research-report/",{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/sierra-leone-joint-bank-fund-debt-sustainability-analysis-high-risk/110547/",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 is the overall conclusion of the joint debt sustainability analysis for Sierra Leone?","Question",{"text":76,"@type":77},"The analysis finds that the risk of external and overall debt distress is high, but debt remains sustainable under the baseline assumptions.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Why do fiscal slippages and external factors increase Sierra Leone’s debt distress risks?",{"text":81,"@type":77},"They raise the need for a larger and more frontloaded fiscal adjustment to achieve program objectives and keep debt indicators within sustainability bounds.",{"name":83,"@type":74,"acceptedAnswer":84},"How do short-term domestic financing instruments affect rollover risks?",{"text":85,"@type":77},"Heavy reliance on short-term T-Bills creates potential rollover risks, reflected in persistently elevated debt service ratios and gross financing needs over the medium and long term.","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},[94,98,102,106,111,115,120,123,127,130,134],{"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":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":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"]