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Reform of the Policy on Public Debt Limits in IMF-Supported Programs

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  • International Monetary Fund

Abstract

This paper evaluates the IMF’s policy on the use of quantitative limits on public debt in IMF-supported programs (the “debt limits policy”) and proposes a number of modifications. The review is taking place at a time when many countries are experiencing heightened debt vulnerabilities or actual debt distress, aggravated by the COVID-19 shock, and occurring against the backdrop of a changing credit landscape in which concessional finance is scarcer relative to countries’ investment needs.

Suggested Citation

Handle: RePEc:imf:imfpps:2020/061
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File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=49876
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