EMTA Special Seminar: Assessing Public Debt Sustainability

This new framework for debt sustainability analysis for market access countries (MAC DSA) introduces new tools to scrutinize debt sustainability from several different perspectives. In addition to evaluating debt trajectories, the new framework assesses the solvency and liquidity risks by comparing the public debt, financing needs, and liquidity indicators to early warning benchmarks intended to flag potential vulnerabilities at an early stage. The new framework is designed to be flexible and practical, while emphasizing clarity and transparency.