World Bank, IMF Back Changes to Debt Framework for Poor Countries
The World Bank and IMF executive boards approved reforms to the joint debt sustainability framework for low-income countries, the first review since 2017. The changes broaden analysis to domestic debt and long-term challenges such as climate change, leave the discount rate at 5%, and will become operational in the second half of 2027.
Why it matters: This bears on the briefing's debt sustainability theme by showing how the main multilateral lenders are adjusting the tools used to assess low-income countries' borrowing capacity.