The IMF is a powerful gatekeeper for financing and debt relief and sets the macroeconomic parameters and incentives for governments on how to deal with a critical external debt situation. At the centre of this are the IMF’s debt sustainability analyses. With a de facto monopoly on these analyses comes a huge responsibility that the IMF does not always meet.
Debt sustainability analyses are not just technical documents but deeply political and relevant for CSOs, as the results will have an impact on the government’s policies and decisions and the social and economic rights of a country’s citizens.
The IMF has a track record of too-little-too-late debt relief and optimistic economic projections. CSOs should therefore have a critical eye on the analyses of the IMF, which are the basis for how a shaky debt situation is being dealt with.
Editor: Friedrich Ebert Foundation
Author: Kristina Rehbein
Date of publication: October 2023
Language: English
Free download: “Understanding IMF Debt Sustainability Analyses. A Toolkit for CSOs to critically engage with the IMF.”