[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110951-en":3,"doc-seo-110951-105":29,"detail-sidebar-cat-0-en-105":90},{"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":4,"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},110951,687197207919,"Theodora","https://ap-avatar.wpscdn.com/avatar/a000253d6f5f7c60be?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779446848396160552",8,"Research & Report","Solomon Islands - Joint World Bank-IMF Debt Sustainability Analysis - Summary of Debt Distress Risk","External and overall public debt in Solomon Islands increased due to the COVID-19 pandemic, yet the country remains at a moderate risk of external and overall debt distress. Under baseline conditions, external and overall debt indicators stay below relevant thresholds; breaches occur under export-shock and commodity-price/real-GDP-growth shock scenarios, and a comparable natural-disaster shock would worsen the trajectory. Despite buffering space, public debt is projected to rise and growth to remain subdued amid fiscal liquidity pressures from low government cash balances, requiring prudent fiscal policy, stronger revenue mobilization, and expenditure rationalization.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nMarcello Estevão and Hassan Zaman (IDA) , Krishna Srinivasan (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 shock |\n| Application of judgement | No |\n\nExternal and overall public debt have increased as a result of the COVID-19 pandemic, but Solomon Islands remains at moderate risk of external and overall debt distress. 1 All external debt indicators remain below the relevant indicative thresholds under the baseline scenario but the PV of external debt-to-exports ratio breaches its threshold 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 the commodity price and real GDP growth shock scenarios. 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 Debt Sustainability Analysis (DSA) suggests that there is substantial space to absorb shocks, public debt is projected to increase significantly and growth is expected to remain subdued over the medium-term. Solomon Islands also faces significant fiscal liquidity challenges stemming from the current low level of the government cash balance. The debt is vulnerable to export shocks, calling for the need to broaden the export base. With pronounced uncertainty around the economic outlook, debt sustainability needs to be anchored by a 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   \n1. The coverage of public sector debt used in this report is central government debt, central government-guaranteed debt, and central bank debt, which is borrowed on behalf of the government. As of end-August 2021, no central government-guaranteed debt had been recorded, and the outstanding debts to the IMF stood at SDR21 .45 million (US$30 .6 million; 1.9 percent of GDP) . The Ministry of Finance and Treasury’s State-Owned Enterprise (SOE) Unit monitors SOE performance and collects basic financial statistics which suggests no outstanding SOE debt. Due to the lack of concrete information, subnational debt and non-guaranteed SOE debt are not included in the analysis.  \n\n|  | \u003Cbr>Subsectors of the public sector  Check box \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\u003Cbr>X\u003Cbr>XX |\n| --- | --- |\n| 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  |\n\n2. Public and Publicly Guaranteed (PPG) external debt stood at US$150.9 million (9.6 percent of GDP) as of end-2020, an increase of 3.5 percent of GDP from 2019 (Table 1) . The Asian Development Bank (ADB) and the International Development Association (IDA) are the largest creditors, accounting for about 92 percent of total external debt. In 2020, an increase in external debt was mainly due to the IMF Rapid Credit Facility/Rapid Financing Instrument (RCF/RFI) (US$28 .84 million, 1.8 percent of GDP), while new external borrowing from the IDA and the ADB also contributed to the large increase in public external debt.  \n3. Public debt was 13.1 percent of GDP as of end-2020, an increase of 4.9 percent of GDP from 2019 (Table 2) .2 Public domestic debt increased to SI$451 .6 million (3 .5 percent of GDP) at end-2020. Negative real GDP growth and an increase","cbCaipV3XLiNhf4h","https://ap.wps.com/l/cbCaipV3XLiNhf4h","pdf",913237,1,20,"English","en",105,"# Risk Assessment and Shocks\n## Baseline vs. Stress Scenarios\n## Fiscal Liquidity and Policy Anchors\n# Debt Coverage and Public Debt Composition\n## Public Sector Debt Scope\n## External Creditor Structure and Drivers\n# Public and Publicly Guaranteed External Debt\n## COVID-19-Related Borrowing\n# Public Debt Levels and Domestic Financing\n## Domestic Development Bonds and Arrears\n# Projections and Policy Limits\n## 2021 Borrowing and Debt-to-GDP Ceiling","[{\"question\":\"What is the overall risk of debt distress for Solomon Islands?\",\"answer\":\"The document rates both the risk of external debt distress and the overall risk of debt distress as moderate.\"},{\"question\":\"Under which scenarios do debt indicators breach thresholds?\",\"answer\":\"External debt-to-exports breaches under an export shock, while the PV of public debt-to-GDP remains below the baseline threshold but breaches under commodity price and real GDP growth shock scenarios.\"},{\"question\":\"What key fiscal challenges increase vulnerability?\",\"answer\":\"The analysis highlights fiscal liquidity challenges due to the low level of government cash balance, alongside vulnerability to export shocks.\"}]",1784487865,50,{"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":85,"head_meta":87,"extra_data":89,"updated_unix":27},"solomon-islands-joint-world-bank-imf-debt-sustainability-analysis-summary-of-debt-distress-risk","",{"@graph":35,"@context":84},[36,53,67],{"@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-summary-of-debt-distress-risk/110951/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What 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