Debt Sustainability Assessment for Restructuring Impact

The debt sustainability assessment is an important IMF assessment for evaluating sovereign risk and debt sustainability. It involves collecting data and information to make a preliminary assessment, which is then discussed with the authorities. If a country decides to restructure its debt due to unsustainability, the DSA plays a crucial role in determining the repayment envelope. This is a matter of great interest to both private creditors and official creditors as it affects how much the country can repay.