[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110770-en":3,"doc-seo-110770-105":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},110770,687197207057,"Sage","https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0",8,"Research & Report","Sierra Leone - Joint World Bank-IMF Debt Sustainability Analysis - September 2021","Joint World Bank-IMF debt sustainability analysis for Sierra Leone concludes that the country’s debt is sustainable, despite high risk levels for external and overall debt distress. The assessment is based on an ambitious fiscal adjustment, continued reliance on concessional financing and grants, and the effects of COVID-19 on growth, exports, revenues, and pandemic response costs. It incorporates disbursements under IMF facilities, debt relief under CCRT, and deferment under DSSI, noting that public debt indicators may take around ten years to fall below thresholds.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nSIERRA LEONE  \nJoint World Bank-IMF Debt Sustainability Analysis1  \nSeptember 2021  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão, Abebe Adugna Dadi (IDA), Catherine Pattillo and Anna Ilyina  \n(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 debt is sustainable. This is predicated on the authorities’ ambitious fiscal adjustment and continued reliance on concessional financing and grants. The risk of external and overall debt distress remains high. The COVID-19 shock has elevated these risks. The baseline projection reflects the deleterious effects ofCOVID-19 on growth, exports, and revenues and their gradual recovery after 2021, as well as the cost of measures to counter the health and socioeconomic effects of the pandemic. This DSA also reflects disbursements under the IMF’s Rapid Credit Facility (RCF) in 2020 and early 2021, projected future disbursements under the Extended Credit Facility (ECF), debt relief under the IMF’s Catastrophe Containment and Relief Trust (CCRT), and debt deferment under the Debt Service Suspension Initiative (DSSI) includingthe recent extension until end-2021 . While the present value of public debt-to-GDP ratio tracks downwards over the medium to long term, it takes about ten years to fall below the indicative thresholds. Some external debt indicators also remain above the thresholds over the medium term. The public debt service-to-revenue ratio and the external debt service-to-exports ratio rise over the medium term, indicating a tight liquidity situation, before steadily declining in the medium to long term. The stress tests highlight the sensitivities to shocks to growth, commodity prices, and exports. Maintaining debt sustainability requires sustained fiscal adjustment underpinned by strengthened public financial management, effective expenditure prioritization, and redoubling structural and revenue mobilization reforms. To adjust at a pace that does not imperil the post-pandemic recovery, and allow for adequate social and priority spending and meeting the country’s large development needs, Sierra Leone should continue to rely on highly concessional financing and ideally grants.  \n1The Composite Indicator score of 2.69, based on the April 2021 WEO and the World Bank’s latest CPIA, indicates a weak debt-carrying capacity.  \nPUBLIC DEBT COVERAGE  \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 self-accounting bodies.  \n\n| Text Table 1. Public Sector Debt Coverage Under the Baseline Scenario |\n| --- |\n| \u003Cbr>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 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8\u003Cbr> |\n|  |\n\n2. The contingent liability stress test accounts for vulnerabilities associated with SOEsand financial market risks (Text Table 2). The contingent liability for ","cbCaibU5GtdSOXnv","https://ap.wps.com/l/cbCaibU5GtdSOXnv","pdf",418003,1,18,"English","en",105,"# Risk Assessment\n## External debt distress risk\n## Overall debt distress risk\n# Baseline Drivers and Policy Assumptions\n## Fiscal adjustment and financing\n## COVID-19 impacts\n## IMF facilities, CCRT and DSSI\n# Public Debt Coverage\n## Baseline coverage scope\n## Treatment of domestic arrears\n# Contingent Liability Stress Test\n## SOE-related liabilities\n## Financial market risks\n# Background on Debt\n## 2020 debt and COVID-19 strain\n## Growth and revenue shocks","[{\"question\":\"What is the overall conclusion of the Sierra Leone debt sustainability analysis?\",\"answer\":\"The analysis concludes that Sierra Leone’s debt is sustainable, even though the risk of external and overall debt distress remains high.\"},{\"question\":\"Why are external and overall debt distress risks assessed as high?\",\"answer\":\"The high risk reflects the COVID-19 shock’s negative effects on growth, exports, and revenues, alongside the short-to-medium-term persistence of some external debt indicators above thresholds.\"},{\"question\":\"What key elements are included when assessing public debt coverage and contingent liabilities?\",\"answer\":\"Public debt coverage includes central government public and publicly-guaranteed debts and estimates of domestic payment arrears. The contingent liability stress test covers vulnerabilities linked to SOEs and financial market risks, using specified percent-of-GDP assumptions.\"}]",1784486975,45,{"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":86,"head_meta":88,"extra_data":90,"updated_unix":27},"sierra-leone-joint-world-bank-imf-debt-sustainability-analysis-september-2021","",{"@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-world-bank-imf-debt-sustainability-analysis-september-2021/110770/",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","2026-07-22","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 is the overall conclusion of the Sierra Leone debt sustainability analysis?","Question",{"text":75,"@type":76},"The analysis concludes that Sierra Leone’s debt is sustainable, even though the risk of external and overall debt distress remains high.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Why are external and overall debt distress risks assessed as high?",{"text":80,"@type":76},"The high risk reflects the COVID-19 shock’s negative effects on growth, exports, and revenues, alongside the short-to-medium-term persistence of some external debt indicators above thresholds.",{"name":82,"@type":73,"acceptedAnswer":83},"What key elements are included when assessing public debt coverage and contingent liabilities?",{"text":84,"@type":76},"Public debt coverage includes central government public and publicly-guaranteed debts and estimates of domestic payment arrears. The contingent liability stress test covers vulnerabilities linked to SOEs and financial market risks, using specified percent-of-GDP assumptions.","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},[93,97,101,105,110,115,120,123,128,131,135],{"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":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":45,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":45,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":45,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":45,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":45,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]