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International Monetary Fund–World Bank

The International Monetary Fund and World Bank have approved the first major reforms since 2017 to their joint Debt Sustainability Framework for low-income countries. The updated system formally integrates domestic debt vulnerabilities and long-term climate adaptation costs into official debt-carrying capacity assessments.

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The IMF and World Bank have approved the first major overhaul of their joint Debt Sustainability Framework since 2017.From: IMF and World Bank Overhaul Debt Framework to Include Domestic Debt and Climate Risk

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The revised framework introduces dedicated modules to measure domestic liabilities and long-term climate adaptation costs.From: IMF and World Bank Overhaul Debt Framework to Include Domestic Debt and Climate Risk ·
The IMF's three-tiered external debt thresholds based on a country's debt-carrying capacity.From: The 30, 40, and 55 Percent PV-to-GDP Thresholds: How the IMF Classifies Debt-Carrying Capacity ·
The variables that make up the Composite Indicator score.From: The 30, 40, and 55 Percent PV-to-GDP Thresholds: How the IMF Classifies Debt-Carrying Capacity ·

Timeline

September 2026

  1. IMF and World Bank Overhaul Debt Framework to Include Domestic Debt and Climate Risk
  2. The 30, 40, and 55 Percent PV-to-GDP Thresholds: How the IMF Classifies Debt-Carrying Capacity