[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109793-en":3,"doc-seo-109793-105":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},109793,2336464648746,"Skyler","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Sierra Leone - Joint World Bank-IMF Debt Sustainability Analysis - April 2020","Sierra Leone’s joint World Bank–IMF debt sustainability assessment classifies both the risk of external debt distress and the overall risk of debt distress as high. Under the baseline, key debt-service indicators breach key thresholds during 2022–23 and later through 2029, while public debt service-to-revenue rises above 47% by 2022. Large verified domestic expenditure arrears weigh on medium-term finances amid vulnerability to adverse shocks. Despite these risks, debt is assessed as sustainable under the program’s policy settings, contingent on arrears clearance, fiscal deficit reduction, stronger public financial management, and continued reliance on concessional financing.","Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nSIERRA LEONE  \nJoint World Bank-IMF Debt Sustainability Analysis  \nApril 2020  \nPrepared jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão (IDA), Dominique Desruelle and Kevin Fletcher (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 debt distress and overall risk of debt distress are both assessed as“high”, unchanged from the 2018 DSA. Under the baseline scenario, the external debt service-to-revenue ratio breaches the threshold by a small margin during 2022-23. The probability approach shows that both the PV of the external debt-to-GDP ratio breaches the threshold throughout the period of the IMF-supported program, and the external debt service-to-revenue ratio substantially breaches the threshold through 2029. The public debt service-to-revenue ratio will rise to above 47 percent by 2022, before it starts to gradually fall. The recently verified large stock of domestic expenditure arrears also weighs on public finances in the medium term. The economy remains vulnerable to adverse shocks, while uncertainty in the mining sector clouds export and growth prospects. Nonetheless, Sierra Leone’s debt is assessed to be sustainable under the program’s policy settings. Reducing Sierra Leone’s debt requires a comprehensive arrears clearance strategy, consistent with continued budget deficit reduction, and supported by strengthened public financial management, expenditure prioritization, and continued efforts to mobilize revenue. External borrowing should continue to be anchored by the objective of reducing the risk of debt distress. Staff recommendation is that the government should continue to rely heavily on concessional financing.  \nRECENT DEBT DEVELOPMENTS  \n1. Total public and publicly guaranteed (PPG) external debt stood at 40.8 percent of GDP in 2018, 1 and is estimated to have increased slightly to 42.6 percent of GDP in 2019. External debt is predominantly owed to multilateral creditors (about 75 percent), in large part due to debt contracted for post-Ebola recovery and infrastructure construction needs. Sierra Leone has preHIPC debt (arrears) to commercial creditors—estimated at US$195 million (12 .4 percent of total external debt) in 2018 .  \n2. The updated estimate of domestic payment arrears reflects the findings of the Government’s recent stocktaking exercise. The 2018 DSA estimated the stock of arrears at  \n4.7 percent of GDP, which reflected unpaid checks at the Ministry of Finance. However, in September 2019 the authorities completed an arrears stocktaking exercise that revealed a substantially large stock of arrears. Most of these arrears—Le 3.3 trillion or 8¾ percent of 2019 non-iron ore GDP—accumulated before April 2018, of which 90 percent accrued during 2016–17. These arrears principally reflect unpaid bills (general expenditure arrears) by ministries, departments and agencies in the road, security and energy sectors, and pre-April 2018 unpaid checks at the Ministry of Finance. A further ¾ percent of GDP of unpaid checks is estimated to have accrued since April  \n2018. As of end-2019, the updated domestic public debt stock is estimated to stand at approximately 25 percent of GDP (lower than the revised stock of 2018), largely reflecting lower fiscal deficit and higher nominal GDP.  \n3. The Government is finalizing its arrears clearance strategy. As noted in the staff report, and discussed in further detail in the selected issues paper on “Managing and Preventing Expenditure Arrears in Sierra Leone”, clearing the arrears will require haircuts, repayment t","cbCairXiW9f2DfYs","https://ap.wps.com/l/cbCairXiW9f2DfYs","pdf",565157,4,1,18,"English","en",105,"# Recent Debt Developments\n# Public Sector Debt Coverage","[{\"question\":\"How does the assessment rate Sierra Leone’s external and overall risk of debt distress?\",\"answer\":\"Both the risk of external debt distress and the overall risk of debt distress are assessed as high, unchanged from the 2018 DSA.\"},{\"question\":\"Which debt indicators breach thresholds under the baseline scenario?\",\"answer\":\"The external debt service-to-revenue ratio breaches the threshold slightly during 2022–23, while the PV of the external debt-to-GDP ratio breaches the threshold throughout the IMF-supported program. The external debt service-to-revenue ratio substantially breaches the threshold through 2029.\"},{\"question\":\"What conditions are emphasized to keep debt sustainable under the program?\",\"answer\":\"Sustainability depends on a comprehensive arrears clearance strategy supported by continued budget deficit reduction, strengthened public financial management, expenditure prioritization, revenue mobilization, and continued anchoring of external borrowing in reducing debt-distress risk with heavy reliance on concessional financing.\"}]","Sierra Leone - Joint World Bank-IMF Debt Sustainability Analysis - April 2020 | PDF",1784482398,45,{"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-world-bank-imf-debt-sustainability-analysis-april-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/sierra-leone-joint-world-bank-imf-debt-sustainability-analysis-april-2020/109793/",{"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","2026-07-30","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},"How does the assessment rate Sierra Leone’s external and overall risk of debt distress?","Question",{"text":76,"@type":77},"Both the risk of external debt distress and the overall risk of debt distress are assessed as high, unchanged from the 2018 DSA.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Which debt indicators breach thresholds under the baseline scenario?",{"text":81,"@type":77},"The external debt service-to-revenue ratio breaches the threshold slightly during 2022–23, while the PV of the external debt-to-GDP ratio breaches the threshold throughout the IMF-supported program. The external debt service-to-revenue ratio substantially breaches the threshold through 2029.",{"name":83,"@type":74,"acceptedAnswer":84},"What conditions are emphasized to keep debt sustainable under the program?",{"text":85,"@type":77},"Sustainability depends on a comprehensive arrears clearance strategy supported by continued budget deficit reduction, strengthened public financial management, expenditure prioritization, revenue mobilization, and continued anchoring of external borrowing in reducing debt-distress risk with heavy reliance on concessional financing.","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},[94,98,102,106,111,116,121,124,129,132,136],{"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":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]