Debt sustainability

External borrowing plays a crucial role in supplementing domestic savings to finance desirable development investments (including essential infrastructure), accelerating economic growth and smoothing macroeconomic cycles. Yet, for many reasons, both external and domestic, and which also include economic and natural disasters, many developing countries have at one time or another accumulated mounting debt burdens and onerous debt-servicing obligations. Prudent macroeconomic policies and public debt management are necessary conditions for maintaining sustainable debt burdens, but despite such efforts, debt sustainability can be derailed by global economic and financial instability and unexpected shocks.

Sustainable Development Goals:

Partnerships for the Goals