The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework - An Independent Evaluation Report to the Board

Jul 19, 2026

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This independent evaluation report examines the World Bank’s role in and use of the Low-Income Country Debt Sustainability Framework (LIC-DSF). It informs the upcoming World Bank–IMF LIC-DSF review by highlighting how Debt Sustainability Analyses (DSAs) serve as a signaling tool for creditors and investors and as a core analytical product requiring assessment within the WBG Evolution Roadmap. The committee also addresses debt transparency progress, analytical consistency, strengthened long-term growth projections, integration of debt vulnerability, and climate change alignment with DSAs and CCDRs.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Overview of the evaluation

Relevance for the LIC-DSF review

Role of DSAs and analytical products

Management response and implementation themes

Debt transparency: coverage and data quality

Consistency of analytical basis and policy advice

Strengthening growth projections and country frameworks

Linking DSAs to DPOs and SDFP actions

Climate change integration and alignment with CCDRs

Public Disclosure Authorized Public Disclosure Authorized The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework An Independent Evaluation Report to the Board from the Committee on Development Effectiveness ∗ Meeting of March 29, 2023 The Committee on Development Effectiveness met to consider the report entitled The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework: An Independent Evaluation (CODE2023-0012) and the World Bank Draft Management Response (CODE2023-0014) . The Committee commended IEG for the timely and relevant evaluation, noting that the findings and recommendations were relevant to inform the upcoming World Bank-IMF Low-income Country Debt Sustainability Framework review (LIC-DSF) which they underscored as a core diagnostic that serves a wide range of purposes, including the use of Debt Sustainability Analysis (DSAs) as an important signaling function to creditors and investors. They also emphasized that DSAs are a core analytical product that will need to be assessed in the context of the WBG Evolution Roadmap. They appreciated Management’s response and broad agreement with the Report’s recommendations and were pleased to learn about the quality of collaboration between the World Bank (WB) and the IMF on the LIC-DSF as well as improvements in the WB’s role in the assessment of long-term macro-economic prospects. Members took note of the progress on debt transparency, encouraged continued attention to debt data coverage and quality and urged the WB to continue to play a crucial role in supporting debtorsand creditors in these efforts. They stressed the need to ensure consistency of the analytical basis and related policy advice to the extent possible, and as such, welcomed Management's plans to strengthen long-term growth projections by enhancing Country Economic Memorandums (CEM) based long-term growth analytics, and to increase attention to debt vulnerability and long-term sustainable growth determinants in Country Partnership Frameworks (CPFs) . They agreed that the DSAs should be fully used to inform the prior actions of Development Policy Operations (DPOs), and performance and policy actions (PPAs) in the Sustainable Development Finance Policy (SDFP) . Members also highlighted that forward-looking sustainability can no longer be separated from climate change, urging increased focus of the analysis of the impact of climate change on debt sustainability including ensuring alignment between the DSAs and the CCDRs. ∗ This report is not an approved record.

FAQs

Why are the findings and recommendations relevant for the LIC-DSF review?

They are relevant to inform the upcoming World Bank–IMF Low-income Country Debt Sustainability Framework review, emphasizing the diagnostic value of Debt Sustainability Analyses (DSAs) for multiple purposes.

How should DSAs be used according to the committee?

DSAs should be fully used to inform prior actions of Development Policy Operations (DPOs) and performance and policy actions (PPAs) in the Sustainable Development Finance Policy (SDFP).

What additional considerations are required for debt sustainability going forward?

Forward-looking sustainability cannot be separated from climate change, so the analysis should include the impact of climate change on debt sustainability and align DSAs with CCDRs.

Jul 19, 2026

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