[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111045-en":3,"doc-seo-111045-105":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},111045,7971461741311,"Ophelia","https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826",8,"Research & Report","Tuvalu - Joint World Bank-IMF Debt Sustainability Analysis - August 2021","Joint World Bank and IMF analysis assesses Tuvalu’s risk of external and public debt distress, concluding that the country remains at high risk of debt distress and that this assessment is unchanged from the 2018 Debt Sustainability Analysis. Despite a fiscal surplus in 2020, projected persistent deficits under current policies, elevated spending, volatile fishing revenues, and declining grant uncertainty raise vulnerability. The projection horizon is extended to capture climate and natural-disaster effects. Debt indicators breach thresholds in the long run under the baseline scenario, yet debt is assessed sustainable under concessional support, low debt service ratios, and sizable cash buffers in the CIF.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nTUVALU  \nJOINT WORLD BANK-IMF DEBT SUSTAINABILITY ANALYSIS  \nAugust 2021  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF) Approved by Marcello Estevão, Alma Kanani (IDA) and Helge Berger (IMF)  \n\n| Tuvalu\u003Cbr>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 | Yes |\n\nTuvalu remains at a high risk of debt distress, unchanged from the 2018 Debt Sustainability Analysis (DSA). While government’s fiscal position in 2020 remained in surplus, under the current policies Tuvalu is projected to face persistent fiscal deficits going forward. To adequately capture Tuvalu’s vulnerability to natural disasters and the effects of climate change, the projection horizon was extended to 20 years, as opposed to the standard ten years. Present Value (PV) of external and total public debt-to-GDP ratios currently remain below their respective thresholds. However, these ratios are projected to breach the thresholds under the baseline scenario in the long-run. Elevated current spending, high reliance on fishing revenues (which remain volatile and subject to changing weather patterns) and grants (projected to decline in the future given uncertainty of donor commitments), and risks of natural disasters pose a risk to Tuvalu’s debt sustainability outlook. This underscores the importance of reigning in fiscal deficits, improving public financial management and implementing structural reforms in order to ensure good cooperation with international donors and securing grants needed to fulfill country’s large development needs. Thus, Tuvalu is assessed to be at a high risk of external and public debt distress on the basis of judgment due to its exposure to climate shocks. Despite upward trending debt burden indicators, Tuvalu’s debt is assessed as sustainable. This assessment is based on the assumption of a continued access to external budget support on concessional terms from the development partners, low debt service ratios throughout the projection horizon, and significant cash buffers in Consolidated Investment Fund (CIF) .  \nPUBLIC DEBT: COVERAGE AND RECENT DEVELOPMENTS  \n1. Tuvalu’s liabilities covered in this DSA comprise of concessional debt of the central government and debt of the State-Owned Enterprises (SOEs) (Text Table 1) . Total official public debt (incl. SOEs) stood at 7.3 percent of GDP in 2020 (Text Table 2) . The official public debt (excl. SOEs), consisting only of external debt with an average maturity of 29 years, stood at  \n5.5 percent of GDP (there is no domestic public debt) . About 60 percent of the debt is denominated in U.S. dollar (after accounting for its weight in SDR) . Debt incurred by public entities that has been explicitly guaranteed by the government has been repaid in full in 2018. In 2020, the authorities begun reporting debt of the SOEs that has been implicitly guaranteed by the government. This debt is domestic, incurred to the National Bank of Tuvalu (NBT) in the form of lines of credit, and in 2020 it stood at AUD1 .4 million, or 1.8 percent of GDP.1 While SOE loans do not carry an explicit government guarantee, the authorities may be asked to step in and cover these obligations ifan SOE were unable to fulfill it, given that these corporations are wholly owned by the government. That justifies its inclusion in the baseline definition of government debt rather than as a contingent liability (Text Table 3) . Bilateral donors provide only grant assistance, while multilateral development institutions (like ADB) provide both grants and concessional lending. There are no sub-government structures in Tuvalu able to contract debt and no central bank an","cbCaileiGuEVxBAc","https://ap.wps.com/l/cbCaileiGuEVxBAc","pdf",659562,1,18,"English","en",105,"# Risk Assessment and Outlook\n## Baseline projections and climate-related vulnerability\n# Public Debt: Coverage and Recent Developments\n## Debt definitions and creditor composition\n## Recent debt trends and repayment context\n## External assets and trust funds (TTF, CIF)","[{\"question\":\"What is the overall conclusion about Tuvalu’s debt distress risk?\",\"answer\":\"Tuvalu is assessed to face a high risk of external and public debt distress. The result is unchanged from the 2018 Debt Sustainability Analysis.\"},{\"question\":\"Why are the projection horizon and assumptions adjusted in this analysis?\",\"answer\":\"The horizon is extended to 20 years to better capture exposure to natural disasters and climate change. The assessment also relies on continued access to concessional external budget support and low debt service ratios.\"},{\"question\":\"How is Tuvalu’s public debt coverage defined in the DSA?\",\"answer\":\"The liabilities covered include concessional central government debt and debt of state-owned enterprises (SOEs), with SOE loans treated in the baseline definition due to government ownership and potential support needs.\"}]",1784488292,45,{"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},"tuvalu-joint-world-bank-imf-debt-sustainability-analysis-august-2021","",{"@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/tuvalu-joint-world-bank-imf-debt-sustainability-analysis-august-2021/111045/",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 is the overall conclusion about Tuvalu’s debt distress risk?","Question",{"text":74,"@type":75},"Tuvalu is assessed to face a high risk of external and public debt distress. The result is unchanged from the 2018 Debt Sustainability Analysis.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why are the projection horizon and assumptions adjusted in this analysis?",{"text":79,"@type":75},"The horizon is extended to 20 years to better capture exposure to natural disasters and climate change. The assessment also relies on continued access to concessional external budget support and low debt service ratios.",{"name":81,"@type":72,"acceptedAnswer":82},"How is Tuvalu’s public debt coverage defined in the DSA?",{"text":83,"@type":75},"The liabilities covered include concessional central government debt and debt of state-owned enterprises (SOEs), with SOE loans treated in the baseline definition due to government ownership and potential support needs.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":45,"category_name":136,"show_sort_weight":105,"slug":137},19,"General","general"]