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Lifting the hood of the LIC-DSF to revamp its accuracy and transparency
The Debt Sustainability Framework for Low-Income Countries (LIC-DSF), developed by the IMF and World Bank, serves as a vital instrument for assessing debt-related risks in vulnerable economies. With many low-income countries experiencing escalating debt pressures — particularly in the wake of the COVID-19 pandemic and higher global interest rates — the importance of the LIC DSF has grown significantly.