Suchergebnisse

The World Bank and the IMF have adopted a debt sustainability framework (DSF) to evaluate the risk of debt distress in Low Income Countries (LICs). At the core of the DSF are empirically-based thresholds for each of five different measures of the debt burden (the ?debt threshold approach? DTA). The DSF contains a rule for aggregating the information contained in these five different variables which we label the ?worst-case aggregator? (WCA) in view of the fact that the DSF considers a breach of any one of the thresholds sufficient to indicate a high risk of debt distress. However, neither the