[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111114-en":3,"doc-seo-111114-105":31,"detail-sidebar-cat-0-en-105":93},{"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},111114,687197100911,"Himbo","https://ap-avatar.wpscdn.com/avatar/a000239b6f1da00475?x-image-process=image/resize,m_fixed,w_180,h_180&k=1785132997149421697",8,"Research & Report","Sierra Leone - Joint World Bank-IMF Debt Sustainability Analysis","Joint World Bank-IMF debt sustainability analysis for Sierra Leone assesses public debt with a baseline showing sustainability while highlighting elevated external and overall debt distress risks. External risk and overall risk remain high versus the prior November 2024 DSA, reflecting a downgrade in debt-carrying capacity to “weak” and vulnerabilities in short-term liquidity and solvency. Threshold breaches persist through the projection horizon, including external debt service-to-revenue until 2028 and PV public debt-to-GDP until 2026, with overall debt-service-to-revenue above 100% until 2029.","Public Disclosure Authorized  \nPub lic Disc losure Authorized  \nApproved by:  \nManuela Francisco and Abebe Adugna (IDA) , and Papa N’Diaye 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 November 2024. The downgrade to “weak” debt-carrying capacity underscores serious short-term liquidity and solvency vulnerabilities.1 This assessment hinges on the authorities ’ commitment to program objectives—including a very ambitious fiscal adjustment—and continued access to highly concessional external financing including grants. The external debt service-to-revenue ratio breaches its threshold until 2028 , and the PV of the public debt-to-GDP ratio breaches its threshold until 2026. The overall debt-service-to-revenue ratio remains above 100 percent until 2029. All debt indicators decline over the medium to long term. Efforts to seek grant financing and lengthen the maturity of debt remain critical as debt service ratios and gross financing needs will remain elevated over the medium term. Domestic rollover risks are mitigated by the authorities’ commitment to bringing down the domestic financing envelope. Sierra Leone is highly susceptible to shocks to exports , commodity prices , and the primary balance, and exchange rate , as well as contingent liabilities. The risk to the required fiscal consolidation not being sustained is high in light of the frequent fiscal overruns in recent years.  \n1 Sierra Leone’s debt-carrying capacity has been downgraded to “weak” with a composite indicator value of 2.65 based on the October 2025 IMF World Economic Outlook (WEO) and the 2024 World Bank Country Policy and Institutional Assessment (CPIA) . This assessment provides a second signal for downgrade from “medium” to “weak” debt-carrying capacity after the first signal in April 2025.  \n1. Public debt coverage is unchanged from 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 on improving its financial and debt management systems— with the support of development partners including the World Bank—and on enhancing the accounting for 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-2024 .  \n\n|  |\n| --- |\n| \u003Cbr>Subsectors of the public sector  Check box \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| Note: Blank indicates there is no data. |\n\n2. The assumptions in the contingent liability stress test are the same as in the previous DSA. Total contingent liabilities are estimated at 10 percent of GDP. Specifically, (i) the contingent liability for SOE debt is set at 5 percent of GDP, higher than the default value , reflecting the authorities’ latest estimates;2 (ii) contingent liabilities from financial markets are set at the standard minimum value of 5 percent of GDP based on the average fiscal cost of a financial crisis in LICs since 1980; and (iii) the contingent liability of other elements of the general government is set at 0 beca","cbCaijQ1yQgtI11W","https://ap.wps.com/l/cbCaijQ1yQgtI11W","pdf",850564,5,1,26,"English","en",105,"# Key Risk Ratings\n## External debt distress\n## Overall debt distress\n## Granularity and judgment","[{\"question\":\"What are the main debt distress risk ratings in the Sierra Leone DSA?\",\"answer\":\"The analysis rates external debt distress as High and overall risk of debt distress as High, with granularity in the risk rating marked as Sustainable and judgment application marked as No.\"},{\"question\":\"Why is the external risk assessed as high despite sustainability of public debt?\",\"answer\":\"The DSA links high external and overall distress risk to a downgrade in debt-carrying capacity to “weak,” indicating serious short-term liquidity and solvency vulnerabilities and persistent threshold breaches in key ratios.\"},{\"question\":\"Which indicators breach their thresholds and through which years?\",\"answer\":\"The external debt service-to-revenue ratio breaches its threshold until 2028, the PV of the public debt-to-GDP ratio breaches until 2026, and the overall debt-service-to-revenue ratio stays above 100% until 2029.\"}]","Sierra Leone - Joint World Bank-IMF Debt Sustainability Analysis | PDF",1784488660,66,{"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":88,"head_meta":90,"extra_data":92,"updated_unix":29},"sierra-leone-joint-world-bank-imf-debt-sustainability-analysis","",{"@graph":37,"@context":87},[38,55,70],{"@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":54},"https://docshare.wps.com/document/sierra-leone-joint-world-bank-imf-debt-sustainability-analysis/111114/",4,{"url":53,"name":13,"@type":56,"author":57,"headline":13,"publisher":59,"fileFormat":62,"inLanguage":24,"description":14,"dateModified":63,"datePublished":64,"encodingFormat":62,"isAccessibleForFree":65,"interactionStatistic":66},"DigitalDocument",{"name":9,"@type":58},"Person",{"url":42,"name":60,"@type":61},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":67,"interactionType":68,"userInteractionCount":20},"InteractionCounter",{"@type":69},"ViewAction",{"@type":71,"mainEntity":72},"FAQPage",[73,79,83],{"name":74,"@type":75,"acceptedAnswer":76},"What are the main debt distress risk ratings in the Sierra Leone DSA?","Question",{"text":77,"@type":78},"The analysis rates external debt distress as High and overall risk of debt distress as High, with granularity in the risk rating marked as Sustainable and judgment application marked as No.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"Why is the external risk assessed as high despite sustainability of public debt?",{"text":82,"@type":78},"The DSA links high external and overall distress risk to a downgrade in debt-carrying capacity to “weak,” indicating serious short-term liquidity and solvency vulnerabilities and persistent threshold breaches in key ratios.",{"name":84,"@type":75,"acceptedAnswer":85},"Which indicators breach their thresholds and through which years?",{"text":86,"@type":78},"The external debt service-to-revenue ratio breaches its threshold until 2028, the PV of the public debt-to-GDP ratio breaches until 2026, and the overall debt-service-to-revenue ratio stays above 100% until 2029.","https://schema.org",{"og:url":53,"og:type":89,"og:title":13,"og:site_name":60,"og:description":14},"article",{"robots":91,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":94},[95,99,103,107,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":96,"show_sort_weight":97,"slug":98},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":100,"show_sort_weight":101,"slug":102},"Literature",80,"literature",{"id":54,"doc_module":4,"doc_module_name":47,"category_name":104,"show_sort_weight":105,"slug":106},"Exam",70,"exam",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},"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":20,"slug":139},19,"General","general"]