[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110172-en":3,"doc-seo-110172-105":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},110172,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","Solomon Islands: Joint World Bank-IMF Debt Sustainability Analysis - Moderate Risk of External Debt Distress","Solomon Islands’ 2023 Debt Sustainability Analysis (DSA) finds the risk of debt distress remains moderate, with substantial space to absorb shocks, unchanged from the 2021 DSA. Under the baseline, external debt indicators stay below indicative thresholds, but the PV of external debt-to-exports breaches under an export shock. PV of public debt-to-GDP stays below the baseline threshold yet breaches under alternative scenarios, including commodity price shocks and a natural disaster stressor of similar scale. Key risks include low government cash balances, fiscal liquidity strains, mismanagement of infrastructure projects, and potential shifts toward domestic financing.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nHassan Zaman and Manuela Francisco (IDA); Thomas Helbling (IMF)  \nPrepared by the staff of the International Development Association(IDA) and the International Monetary Fund (IMF) .  \n\n| SOLOMON ISLANDS: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | Moderate |\n| Overall risk of debt distress | Moderate |\n| Granularity in the risk rating | Substantial space to absorb shocks |\n| Application of judgment | No |\n\nThe 2023 Debt Sustainability Analysis (DSA) indicates that the risk of debt distress in Solomon Islands remains moderate with substantive space to absorb shocks; the rating is unchanged from the 2021 DSA 1. Debt coverage has remained unchanged compared to the 2021 DSA (IMF Country Report No. 21/211) . All external debt indicators remain below the relevant indicative thresholds under the baseline scenario but breach the threshold of the PV of external debt-to-exports ratio under an export shock scenario. The PV of public debt-to-GDP ratio remains below the indicative threshold under the baseline scenario but breaches the threshold under various alternative scenarios including a commodity price shock. A tailored natural disaster shock of similar scale to the largest historical shock would also cause a significant deterioration in the debt trajectory. While the DSA suggests that there is substantial space to absorb shocks, Solomon Islands faces significant fiscal liquidity challenges stemming from the current low level of the government cash balance and rising fiscal risks including from mismanagement of infrastructure projects. Those projects include large-scale investments to host the 2023 Pacific Games as well as a cell phone tower expansion project. A sizable shift to domestic financing projected in the medium term could bring about serious risks in debt management. With pronounced uncertainty around the economic outlook, debt sustainability needs to be anchored by  \n1 Solomon Islands Composite Index (CI) is estimated at 2.59 based on the October 2022 World Economic Outlook and the 2021 Country Policy and Institutional Assessment (CPIA), indicating that the debt-carrying capacity remains weak, as in the 2021 DSA.  \na prudent fiscal policy to rebuild fiscal buffers, while creating fiscal space for meeting development spending needs through stronger revenue mobilization measures and expenditure rationalization.  \n1. The coverage of public sector debt used in this report is central government debt, central government guaranteed debt, and central bank debt borrowed on behalf of the government. Debt coverage has remained unchanged since the 2021 DSA. Because of data limitations, other elements in the general government, non-guaranteed state-owned enterprise (SOE) debt, and private external debt are not included in the analysis. The authorities are continuing their efforts to improve data coverage, in particular that of the general government, with support from the IMF. The DSA uses a residency-based definition of external debt. The central government’s domestic arrears, where relevant, are included into debt coverage.  \n\n|  |\n| --- |\n| Subsectors of the public sector\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 Check box 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 X\u003Cbr>X\u003Cbr>X\u003Cbr> |\n|  |\n\n2. A stress test for the combined contingent liability shock uses the default setting for SOE debt. There are no explicit contingent liabilities. The standard contingent liability stress test amounts to 7 percent of GDP, which comprises 2 percent of GDP of non-guaranteed SOE debt and 5 percent of potential liabilities stemming from the financial system. T","cbCaiaEGCgYJ6PtX","https://ap.wps.com/l/cbCaiaEGCgYJ6PtX","pdf",1303258,1,22,"English","en",105,"# Key Findings\n## Risk Ratings and Shock Absorption\n## Baseline vs Alternative Scenarios","[{\"question\":\"What risk level does the 2023 DSA assign to Solomon Islands’ debt distress?\",\"answer\":\"The DSA rates both the risk of external debt distress and the overall risk of debt distress as moderate, with substantial space to absorb shocks.\"},{\"question\":\"Which scenarios cause breaches in debt indicators?\",\"answer\":\"While the baseline scenario stays within thresholds, breaches occur under an export shock for the PV of external debt-to-exports ratio and under alternative scenarios for the PV of public debt-to-GDP, including commodity price and natural disaster shocks.\"},{\"question\":\"What fiscal and policy factors drive the main debt sustainability concerns?\",\"answer\":\"Significant fiscal liquidity challenges stem from a low government cash balance and rising fiscal risks linked to infrastructure project mismanagement; medium-term shifts toward domestic financing could also increase debt management risks.\"}]",1784484222,55,{"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},"solomon-islands-joint-world-bank-imf-debt-sustainability-analysis-moderate-risk-of-external-debt-distress","",{"@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/solomon-islands-joint-world-bank-imf-debt-sustainability-analysis-moderate-risk-of-external-debt-distress/110172/",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 risk level does the 2023 DSA assign to Solomon Islands’ debt distress?","Question",{"text":75,"@type":76},"The DSA rates both the risk of external debt distress and the overall risk of debt distress as moderate, with substantial space to absorb shocks.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which scenarios cause breaches in debt indicators?",{"text":80,"@type":76},"While the baseline scenario stays within thresholds, breaches occur under an export shock for the PV of external debt-to-exports ratio and under alternative scenarios for the PV of public debt-to-GDP, including commodity price and natural disaster shocks.",{"name":82,"@type":73,"acceptedAnswer":83},"What fiscal and policy factors drive the main debt sustainability concerns?",{"text":84,"@type":76},"Significant fiscal liquidity challenges stem from a low government cash balance and rising fiscal risks linked to infrastructure project mismanagement; medium-term shifts toward domestic financing could also increase debt management risks.","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"]