Tools and Frameworks for Assessing Debt Sustainability

This chapter discusses the tools and frameworks used by the IMF to assess countries' financial health and make lending decisions, with a focus on debt sustainability analysis (DSA). It explores the differences between the DSA frameworks for low-income countries and market access countries, highlighting the challenges and limitations of using sophisticated data analysis tools in low-income countries. The chapter also emphasizes the need to update the frameworks to capture market financing related stresses and incorporate risks associated with climate change.