Template for Debt Sustainability: A User Manual

The template presented in this note is concerned with the evaluation of the sustainability of total government debt, regardless of whether the creditor is a domestic or foreign resident, a public or private entity or the jurisdiction where the debt was issued (in the case of bonded debt). The focus is on total government debt, rather than the traditional measure of external debt, to reflect the evolution of debt management and financial markets over the past two decades. This template provides access to five different models: 1) Standard Approach, 2) Endogenous Debt Dynamics, 3) Sudden Stop, 4) Fan Charts and 5) Natural Debt Limit. The guide explains the data input requirements and output presentation for each tool, as well as procedures to modify or enrich the models and make them more attuned to the debt situation of a particular country.