Bhutan – Joint Bank-Fund Debt Sustainability Analysis : 2018 Update

Given the unique nature of the bulk of Bhutan’s debt stock, as spelled out in the 2014 and 2016 Debt Sustainability Analysis (DSAs), the risk of debt distress is assessed to remain moderate despite breaches in all five indicators under the baseline. The unique mitigating circumstances are as follows. A large share of outstanding public and publicly guaranteed debt external debt is linked to hydropower project loans from the government of India (GoI). Debt dynamics are set to improve over the medium term driven by a significant increase in electricity exports and decline of imports associated with hydropower construction. While India’s political commitment to increase its reliance on clean energy continues to provide reliable demand, India’s recent power surplus and financing models for new projects where the construction risk is not guaranteed by India are sources of risk.

 

World Bank. 2018. Bhutan – Joint Bank-Fund Debt Sustainability Analysis : 2018 Update (English). Washington, D.C. : World Bank Group.

 

You can access to the document with the below link:

http://documents.worldbank.org/curated/en/551711545410951966/pdf/wbg-bhutan-debt-sustainability-analysis-2018-update-final-nov1218-12182018-636809402108886641.pdf

Recent posts

World AIDS Day

“Communities around the world are at the heart of this response―helping people to claim their rights, promoting access to stigma-free health and social services, ensuring that services reach the most vulnerable and marginalized, and pressing to change laws that discriminate. As the theme of this year’s observance rightly highlights, communities make the difference.”- UN Secretary […]

Read More
Zero Waste Hour

  The UN family led by the Resident Coordinator joins His Excellency the Prime Minister, representatives from the government and international organizations to observe the “Zero Waste Hour” by cleaning the area around the Takin Preserve Zoo in Sangaygang. The “Zero Waste Hour” was launched by Her Majesty, the Gyaltsuen, on 2 June as an […]

Read More
United Nations Sustainable Development Partnership Framework (UNSDPF) for Bhutan for 2019-2023

This United Nations Sustainable Development Framework (UNSDPF) articulates the collective vision of the UN system in Bhutan for 2019-2023. Achieving Agenda 2030 and graduating from the Least Developed Country (LDC) category in a sustainable manner requires continued partnership between the Royal Government of Bhutan, its development partners, key stakeholders, as well as between UN agencies. […]

Read More

Copyright © 2018 United Nations Country Team. All rights reserved