Indicator Name | Usefulness |
· Gross Financing Needs | · Also known as the total stock of maturing public debt, it serves as a good measure of the requirements for government roll over. |
· Share of short-term government debt to total public debt | · Countries with a typically higher need for short-term funding are more exposed to sudden stops when solvency risks are high. A large share of short-term debt compared to total debt signals a high exposure to roll over and solvency risks. |
· Ratio of short-term external debt to international reserves | · This indicator is useful in providing insight on the likely amount of foreign currency needed to service short-term foreign debt obligations. It is particularly useful in countries that follow a fixed exchange rate regime. |
· Share of external debt to total debt | · A high level of foreign currency-denominated debt exposes a country to foreign exchange rate risk and raises the possibility of a negative impact on the government’s ability to service its debt in light of unfavourable exchange rate shocks. |