Regional Workshop on Debt Sustainability Analysis (DSA) for Market Access Countries (MAC)

Public debt in market access countries has increased in recent years due to both adverse shocks and policies. Many commodity exporters’ countries experienced a decline in export prices combined with slow fiscal consolidations which contributed significantly to the rise in public debt. In the non-commodity exporters, the increase in debt was caused by expansionary fiscal policies. In addition, the uncertainties caused by the COVID-19 pandemic limit the prospects of borrowing in international markets, the exposure of banks to the state is likely to accelerate in the short to medium term. This could result in crowding out private sector credit at a time when private financing is critically needed to drive the recovery from the pandemic shock.