The debt policy evaluation appraises a country's
strategic approach to debt management, focusing on its effectiveness in
mitigating fiscal vulnerabilities and promoting enduring financial stability. This indicator reflects how well policies are structured to balance immediate funding needs with long-term economic health, taking into account factors like servicing capacity, the diversification of funding sources, and the overall economic context. A robust debt policy not only safeguards against unforeseen fiscal shocks but also enhances investor confidence, thereby attracting sustainable investment. Ultimately, the assessment reveals the government's commitment to maintaining fiscal discipline while fostering a resilient economic environment that supports sustainable development objectives.
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