# 3. Indirect debt data disclosure

How is Debt Sustainability Analysis (DSA) formulated for all LIDCs<sup>18</sup> on a regular basis despite limited or inexistent direct reporting, as described in Section 2? This is possible because DSAs are supported by data collected and managed by the IMF and the WB. National authorities engage in indirect reporting by providing these international financial institutions (IFIs) and other external agents with data either through participation in existing reporting initiatives or disclosing data upon request.

LIDCs may report debt data to four main statistical databases hosted by the IMF and WB, which are closely aligned with international definitions: Quarterly Public Sector Debt Statistics (QPSDS), Quarterly External Debt Statistics (QEDS), Government Finance Statistics (GFS, annual), and the Debtor Reporting System (DRS). As these databases were created for different purposes, their debt coverage and definitions differ (WB, IMF, 2020c, Annex 2). The DRS provides the most granular data breakdown, it also has the broadest coverage for external debt, and is the only compulsory data disclosure exercise whilst the others are voluntary. Countries that have borrowed from IDA at least once are supposed to complete DRS standardized templates on their external public and publicly guaranteed (PPG) debt on a quarterly and annual basis. These data are then revised by WB staff<sup>19</sup> and published in the International Debt Statistics (IDS).<sup>20</sup> Other IFIs or regional Institutions maintain databases with narrower geographical or instrument coverage (e.g., African Development Bank’s Bond Market Database or the forthcoming Institute of International Finance’s database on external commercial debt). Additional databases that rely on one or multiple existing indirect sources add to the complexity of this environment .<sup>21</sup> In parallel to this structured data collection, indirect reporting may occur as a response to _ad-hoc_ requests coming from the same IFIs; this could be for IMF Article IV missions or IMF/WB lending operations, or from other key stakeholders such as credit rating agencies (CRAs).

The same direct/indirect reporting dichotomy applies to official lenders (bilateral and multilateral). The IMF and the WB publish comprehensive and timely data on their financing;<sup>2223</sup> however, the level of transparency of other multilateral/plurilateral creditors is mixed and largely depends on the degree of accountability imposed by their internal policies and procedures.<sup>24</sup> As for bilateral creditors, some ParisClub members disclose lending operation information on their website or in publications, although these efforts tend to be isolated and mostly driven by good-will.<sup>25</sup> Creditors also feed into international

> 18 The only IDA countries without recent DSA are Eritrea and the Syrian Arab Republic.

> 19 In the case of the WB’s IDS, “data accuracy and comprehensiveness is ensured by validation with other sources such as market data, creditor data, other external statistics such as BOP/IIP, QEDS—including data used in debt analytical exercises led by the World Bank and IMF, such as the medium-term debt strategy (MTDS) or DSA—and rigorous follow-up with government authorities” (IMF/WB, 2020).

> 20 In June 2020, the WB published detailed external debt stock and service data for 68 IDA eligible countries in the IDS database, including a previously unavailable breakdown by creditor. http://datatopics.worldbank.org/debt/ids/ 21For example, WB World Development Indicators (WDI) accesses its debt data from the IMF Government Finance Statistics Yearbook (GFSY).

22 www.imf.org/en/Data/IMF-Finances

> 23 https://ebizprd.worldbank.org/

> 24 In a 2018 survey of 25 MDBs, 16 had policies on public communication or disclosure (Engen and Prizzon, 2018). 25 According to the IMF/WB G20 Operational Guidelines for Sustainable Financing – Survey Results and Policy Recommendation: “Most countries provide information on their lending on the web, but it is not being done in a