Assalamu Alikum,
Here are some useful links and info that I got about the standards of External Debt
dealing mainly with its sustainability:
http://en.wikipedia.org/wiki/External_debt#External_Debt_Sustainability
http://www.un.org/esa/policy/wess/wess2005files/chap5.pdf
Page 12
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IMF defines debt sustainability in terms of:
• The ability to pay.
• The capacity to repay debt taking domestic priorities of human development
and poverty reduction into account.
• A level of debt that is growth enhancing, not one that hinders growth.
• Criteria that take the cyclicality of capital flows into account.
HIPC Initiative Criteria:
The target of sustainability was defined as a range of 200-250 percent for the
PV/foreign exchange earnings ratio and 20-25 percent for debt service ratio.
I hope that it will be helpful and am sorry that it is added late as I just got them now.
My Regards,
Anas
