Debt Sustainability Framework for Low Income Countries from edX

The LIC DSF was developed by the IMF and the World Bank (WB) to help low-income countries achieve their development goals while minimizing the risk of debt distress. This one-module course will allow you to understand the LIC DSF, and thus interpret the LIC DSF outputs presented in WB and IMF reports. The course walks you through the steps involved in applying the LIC DSF. First, we identify data requirements and the “realism tools” used for assessing the plausibility of macroeconomic projections. You will next understand how the LIC DSF computes a country’s debt-carrying capacity, which is used for determining thresholds for the debt-burden indicators. When a debt-burden indicator breaches its threshold under either the baseline or stress test scenarios, this signals risk of debt distress. The course concludes with exploring how judgment can be used to arrive at a final risk rating.

What you'll learn

Upon completion of the course, you should be able to:

Identify data requirements for the use of the LIC DSF template.
Learn the steps in the production of LIC DSF risk ratings.
Understand the LIC DSF realism tools.
Interpret the LIC DSF stress test scenarios.
Identify how the LIC DSF computes thresholds for debt-burden indicators.
Interpret the outputs of the debt sustainability analysis for low income countries, as presented in WB and IMF reports.

What's inside

Learning objectives

Identify data requirements for the use of the lic dsf template.
Learn the steps in the production of lic dsf risk ratings.
Understand the lic dsf realism tools.

Interpret the lic dsf stress test scenarios.
Identify how the lic dsf computes thresholds for debt-burden indicators.
Interpret the outputs of the debt sustainability analysis for low income countries, as presented in wb and imf reports.

Identify data requirements for the use of the lic dsf template.
Learn the steps in the production of lic dsf risk ratings.
Understand the lic dsf realism tools.
Interpret the lic dsf stress test scenarios.
Identify how the lic dsf computes thresholds for debt-burden indicators.
Interpret the outputs of the debt sustainability analysis for low income countries, as presented in wb and imf reports.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Designed for those interested in the financial analysis of low-income countries

Taught by experts in the field of debt sustainability analysis from the IMF and World Bank

Reviews summary

Debt sustainability framework deep dive

According to students, this course is a well-received short introduction to low income country debt distress analysis. Learners say that the technical terms are well-explained and that the materials are covered in good detail. However, students feel that the discussion forum is inactive.

Instructors explain complex financial topics clearly.

"Overall, this was an excellent introduction to debt distress analysis for low income countries."

"The technical terms were explained in a plain easy to understand English."

"Furthermore, it discusses how judgements can contribute to the final risk rating."

Students did not receive responses to questions posted in the forum.

"However, one of the caveat was that the discussion forum was quite inactive."

"After I raised a question to the staff, I had no response from them."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Debt Sustainability Framework for Low Income Countries with these activities:

Review the basic principles of debt sustainability

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Familiarizing yourself with the core principles of debt sustainability will allow you to follow the course material and lessons more easily.

Browse courses on Debt Sustainability

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Read the World Bank's introduction to debt sustainability
Explore the IMF's resources on debt sustainability analysis
Review a textbook or online course on international finance

Review basic macroeconomic concepts

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Reinforce your understanding of fundamental macroeconomic concepts to lay a solid foundation for this course.

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Review textbook chapters or online resources on macroeconomic principles.
Solve practice problems related to macroeconomic concepts.

Review macroeconomic policies

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Reviewing macroeconomic policies will provide a strong foundation for understanding the LIC DSF.

Browse courses on Macroeconomic Policies

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Locate and review relevant textbooks and online resources.
Summarize key concepts and theories related to macroeconomic policies.
Identify and analyze case studies of successful macroeconomic policy implementations.

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Review Probability and Statistics

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Probability and statistics are fundamental to understanding debt sustainability analysis. Reviewing these concepts will help you better grasp the course material.

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Review probability concepts such as conditional probability, Bayes' theorem, and random variables.
Review statistical concepts such as mean, variance, and regression analysis.

Explore the LIC DSF website

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Familiarize yourself with the official LIC DSF website to gain a deeper understanding of the tool.

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Go to the IMF or World Bank website and navigate to the LIC DSF page.
Explore the different sections of the website, such as the documentation and interactive tools.

Discuss the LIC DSF with classmates

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Foster collaboration and enhance understanding by discussing course concepts with peers.

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Form or join a study group with classmates.
Meet regularly to discuss specific topics or concepts related to the LIC DSF.
Share insights, ask questions, and provide feedback to each other.

Practice applying the LIC DSF using IMF and World Bank guidelines

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Practicing applying the LIC DSF will enhance your understanding of its components and methodology.

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Access and review IMF and World Bank guidelines for applying the LIC DSF.
Find sample data and scenarios from real-world case studies.
Apply the LIC DSF step-by-step, following the guidelines.
Compare your results with the official LIC DSF outputs.

Practice calculating debt-carrying capacity

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Develop proficiency in calculating debt-carrying capacity, a crucial component of LIC DSF analysis.

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Review the formula and methodology for calculating debt-carrying capacity.
Solve practice problems using different scenarios and data sets.
Check your answers and identify areas for improvement.

Analyze a sample LIC DSF report

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Gain practical experience by analyzing a sample LIC DSF report to understand its structure and contents.

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Obtain a sample LIC DSF report from the IMF or World Bank website.
Read and understand the report's key findings and recommendations.
Summarize the report's main points and discuss their implications.

Attend a LIC DSF webinar or workshop

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Gain valuable insights and interact with experts in the field by attending a professional event.

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Search for upcoming LIC DSF webinars or workshops hosted by organizations like the IMF or World Bank.
Register for the event and attend it virtually or in person.
Actively participate and ask questions to enhance your learning.

Develop a risk assessment report using the LIC DSF

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Creating a risk assessment report will allow you to synthesize and present your understanding of the LIC DSF.

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Gather data and apply the LIC DSF to assess the risk of debt distress for a selected country.
Analyze the results and identify potential risks and vulnerabilities.
Develop recommendations for mitigating the risks and ensuring debt sustainability.
Write a comprehensive report outlining your findings, analysis, and recommendations.

Career center

Learners who complete Debt Sustainability Framework for Low Income Countries will develop knowledge and skills that may be useful to these careers:

IMF Economist

As an IMF Economist, you will work on a range of economic issues related to international finance and development. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for IMF economists who work on these issues. This course will also help you develop the skills you need to analyze economic data and make recommendations to policymakers.

See salaries and explore the career path for IMF Economist

Policy Advisor

As a Policy Advisor, you will provide advice to policymakers on a range of economic and social issues. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for policy advisors who work on issues related to development and poverty reduction. This course will also help you develop the skills you need to analyze policy options and make recommendations to policymakers.

See salaries and explore the career path for Policy Advisor

International Development Specialist

As an International Development Specialist, you will work to improve the economic and social conditions of people in developing countries. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for development specialists who work with these countries. This course will also help you develop the skills you need to design and implement development programs.

See salaries and explore the career path for International Development Specialist

Sovereign Wealth Fund Manager

As a Sovereign Wealth Fund Manager, you will manage the investment portfolio of a sovereign wealth fund. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for sovereign wealth fund managers who invest in low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound investment decisions.

See salaries and explore the career path for Sovereign Wealth Fund Manager

Treasury Analyst

As a Treasury Analyst, you will manage the financial risks of a company or organization. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for treasury analysts who work with companies or organizations that operate in low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound risk management decisions.

See salaries and explore the career path for Treasury Analyst

World Bank Economist

As a World Bank Economist, you will work on a range of economic issues related to development and poverty reduction. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for World Bank economists who work on these issues. This course will also help you develop the skills you need to analyze economic data and make recommendations to policymakers.

See salaries and explore the career path for World Bank Economist

Financial Analyst

As a Financial Analyst, you will evaluate the financial health of companies and make recommendations to investors. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for financial analysts who work with low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound investment decisions.

See salaries and explore the career path for Financial Analyst

Risk Analyst

As a Risk Analyst, you will identify and assess risks to businesses and organizations. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for risk analysts who work with low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound risk management decisions.

See salaries and explore the career path for Risk Analyst

Investment Banker

As an Investment Banker, you will advise companies and governments on a range of financial transactions. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for investment bankers who work with low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound investment recommendations.

See salaries and explore the career path for Investment Banker

Economist

As an Economist, you will interpret economic and financial data to help make informed decisions. The Debt Sustainability Framework for Low Income Countries course will help you understand how to analyze debt sustainability, which is a critical skill for economists who work with low-income countries. This course will also help you develop the skills you need to assess economic risks and make recommendations to policymakers.

See salaries and explore the career path for Economist

Credit Analyst

As a Credit Analyst, you will assess the creditworthiness of borrowers. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the risk of debt distress, which is a critical skill for credit analysts who work with low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound credit decisions.

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Management Consultant

As a Management Consultant, you will advise companies and organizations on a range of management issues. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the financial risks of companies and organizations, which is a critical skill for management consultants who work with companies and organizations that operate in low-income countries. This course will also help you develop the skills you need to analyze financial data and make sound recommendations to clients.

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Professor

As a Professor, you will teach and research economics and finance. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for professors who teach courses on international finance and development. This course will also help you develop the skills you need to conduct research on debt sustainability and publish your findings in academic journals.

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Researcher

As a Researcher, you will conduct research on a range of economic and financial issues. The Debt Sustainability Framework for Low Income Countries course will help you understand how to assess the debt sustainability of low-income countries, which is a critical skill for researchers who work on issues related to development and poverty reduction. This course will also help you develop the skills you need to design and implement research projects and publish your findings in academic journals.

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Data Analyst

As a Data Analyst, you will collect, analyze, and interpret data to help businesses and organizations make informed decisions. The Debt Sustainability Framework for Low Income Countries course may be useful for Data Analysts who work with data on low-income countries. This course will help you develop the skills you need to clean and analyze data, and to communicate your findings to decision-makers.

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