[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109947-en":3,"doc-seo-109947-105":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},109947,1374391974585,"Genevieve","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Solomon Islands - Joint World Bank-IMF Debt Sustainability Analysis - June 2020","Joint World Bank–IMF Debt Sustainability Analysis for Solomon Islands (June 2020) evaluates external and overall public debt risks under baseline and extreme stress test scenarios following the COVID-19 shock. Updated macroeconomic assumptions incorporate weaker growth, declining logging, mining and fisheries exports, reduced tourism, and tighter domestic demand, alongside widening fiscal and current account deficits. Results indicate a moderate risk of debt distress: indicators remain below relevant thresholds in the baseline but breach under extreme stress, with limited fiscal liquidity to absorb shocks.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nSOLOMON ISLANDS  \nJoint World Bank-IMF Debt Sustainability Analysis  \nJune 2020  \nPrepared Jointly by the staffs ofthe International Development Association (IDA) 1/2/  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão (IDA), Jonathan D. Ostry and Johannes Wiegand (IMF)  \n1 Debt coverage has remained unchanged compared to the 2019 DSA (IMF Country Report No. 20/49) .  \n2 The updated DSA uses the rebased GDP series with 2012 as the base year. The rebased GDP level is approximately 13 percent higher than the previous GDP series with 2004 as the base year.  \n\n| Solomon Islands: Joint Bank-Fund Debt Sustainability Analysis |  |\n| --- | --- |\n| Risk of external debt distress | Moderate3 |\n| Overall risk of debt distress | Moderate |\n| Granularity in the risk rating | Substantial space to absorb shocks |\n| Application of judgment | No |\n| Macroeconomic projections | The updated DSA incorporates a new set of macroeconomic assumptions reflecting the impacts of COVID-19 shock. Growth is expected to fall by 5.5 percent, as a result of a decline in logging, mining and fisheries exports, a contraction in tourism, as well as the negative impact of containment measures on domestic demand. Fiscal and current account deficits are expected to widen sharply. |\n| Financing strategy4 | The RCF/RFI will help finance balance of payment needs. The World Bank has approved the first Solomon Islands transition to sustainable growth development policy operation of US$15 million (US$11.8 million in grant and US$3 .2 million in loan), in addition to US$5 million under the COVID-19 Fast Track Facility expected to be approved by end May. The Asian Development Bank (ADB) has released US$6 million from its Pacific Disaster Resilience Program and is processing an additional US$20 million, a policy-based operation anchored on the government’s COVID-19 response plan. The financing under the World Bank’s COVID-19 Fast Track Facility and ADBis expected to equally comprise grant and loan disbursements. |\n| Realism tools flagged | None |\n| Mechanical risk rating under the external DSA | Moderate |\n| Mechanical risk rating under the public DSA | Moderate |\n\n3 The Composite Indicator score is 2.72, which is based on the October 2019 WEO and the World Bank’s 2018 CPIA, and the country’s debt-carrying capacity is assessed to be medium.  \n4 Solomon Islands has not requested participation in the G20 Debt Service Suspension Initiative (DSSI) .  \nThe updated DSA after the COVID-19 shock suggests Solomon Islands remains at moderate risk of debt distress for both the external and overall public debt. All external debt indicators remain below the relevant indicative thresholds under the baseline scenario but breach thresholds under the extreme stress test scenario (combination shock for the PV of debt-to-GDP and export shock for the PV of debt-to-export and the debt services to export ratio). The PV of public debt-to-GDP ratio remains below the 55 percent benchmark under the baseline scenario, and it would remain below the benchmark under the most extreme shock (real GDP growth) till 2030. Atailored natural disaster shock of similar scale to the largest shock in Solomon Islands’ history would cause a spike in debt trajectory in the aftermath of the event. While the DSA suggests there is substantial space to absorb shocks, Solomon Islands often faces fiscal liquidity challenges due to weak public financial management and the cash balance is currently low. Going forward, stronger revenue mobilization measures and expenditure rationalization are needed to rebuild fiscal buffers and to enhance resilience against shocks.  \n\n| Table 1. Solomon Islands: External Debt Sustainability Framework, Baseline Scenario, 2016-2039\u003Cbr>(In percent of GDP, unless otherwise indicated)\u003Cbr> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |","cbCaigZY3m4LPc3C","https://ap.wps.com/l/cbCaigZY3m4LPc3C","pdf",443547,6,1,12,"English","en",105,"# Risk assessment and key findings\n## Macroeconomic projections and COVID-19 impacts\n## Financing strategy and realism tools\n## Debt distress indicators and scenario results","[{\"question\":\"What updated assumptions drive the June 2020 debt sustainability analysis for Solomon Islands?\",\"answer\":\"The updated DSA incorporates a new set of macroeconomic assumptions reflecting the impacts of the COVID-19 shock, including a projected 5.5% growth decline and widening fiscal and current account deficits.\"},{\"question\":\"How is the overall risk of debt distress assessed after the COVID-19 shock?\",\"answer\":\"Solomon Islands is assessed to remain at moderate risk of debt distress for both external and overall public debt.\"},{\"question\":\"Why do external debt indicators breach thresholds in the extreme stress test scenario?\",\"answer\":\"Under extreme stress, the analysis applies a combination shock to the PV of debt-to-GDP and an export shock to the PV of debt-to-exports and the debt services to export ratio, causing threshold breaches.\"}]","Solomon Islands - Joint World Bank-IMF Debt Sustainability Analysis - June 2020 | PDF",1784483158,30,{"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},"solomon-islands-joint-world-bank-imf-debt-sustainability-analysis-june-2020","",{"@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/solomon-islands-joint-world-bank-imf-debt-sustainability-analysis-june-2020/109947/",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 updated assumptions drive the June 2020 debt sustainability analysis for Solomon Islands?","Question",{"text":77,"@type":78},"The updated DSA incorporates a new set of macroeconomic assumptions reflecting the impacts of the COVID-19 shock, including a projected 5.5% growth decline and widening fiscal and current account deficits.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"How is the overall risk of debt distress assessed after the COVID-19 shock?",{"text":82,"@type":78},"Solomon Islands is assessed to remain at moderate risk of debt distress for both external and overall public debt.",{"name":84,"@type":75,"acceptedAnswer":85},"Why do external debt indicators breach thresholds in the extreme stress test scenario?",{"text":86,"@type":78},"Under extreme stress, the analysis applies a combination shock to the PV of debt-to-GDP and an export shock to the PV of debt-to-exports and the debt services to export ratio, causing threshold breaches.","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},[95,99,103,107,112,116,121,123,128,131,135],{"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":108,"doc_module":4,"doc_module_name":47,"category_name":109,"show_sort_weight":110,"slug":111},5,"Comic",60,"comic",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},"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":30,"slug":122},"research-report",{"id":124,"doc_module":4,"doc_module_name":47,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":47,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":47,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":47,"category_name":137,"show_sort_weight":108,"slug":138},19,"General","general"]