Debt Optimization to Enhance Fiscal Space

Governments in the region are facing increasing debt and debt service burdens. Budgets are being squeezed in order to meet essential expenditure on social services as well as commitments to climate related spending.

Our approach

ESCWA equips policymakers in member States with the necessary tools to improve medium- to long-term debt optimization strategies so as to ensure public debt sustainability and macroeconomic stability and improve fiscal space and the financing of the Sustainable Development Goals. ESCWA supports more effective debt management practices by improving the technical capacity of member States, helping decision-makers to better understand debt statistics, debt instruments, risk analysis, meeting contingencies and enhancing debt sustainability in the medium- and long-term.

Our partners

United Nations Conference on Trade and Development

Our activities

ESCWA produces knowledge and tools on public debt sustainability, including substantive assessment tools for risk analysis and modelling debt sustainability conditions and an analysis of debt instruments and their association with credit ratings for Arab States. ESCWA also delivers support to guide member States through national and regional workshops, enhancing the capacity of policymakers and public officials.

The initiative has several reports:

• The Sovereign Debt and Financial Sector Nexus in the Arab Region
• Sustainability-linked bonds – feasibility and impact potential in the Arab world
• Enhancing social expenditure and fiscal sustainability: A structural macro modelling approach
• Debt Sustainability and Debt Management in the Arab Region
• Central Bank Finance and Debt Dynamics in Arab States 
• Fiscal policy response to public debt in the Arab region (2020)
• Public Debt and Debt Stabilizing Scenarios for Egypt (2020)
• Public Debt and Debt Stabilizing Scenarios for Jordan (2020)
• Fiscal policy response to public debt in the Arab region (2017)

The initiative contributes to global reports and policy briefs on debt and fiscal issues:

• A World of Debt: Regional stories
• Addressing Public Debt Challenges to Effectively Pursue the Sustainable Development Goals: Regional Perspectives (2023)
• Financing for Sustainable Development Report (2022)
• Financing for Sustainable Development Report (2021)
• Liquidity and Debt Solutions to Invest in the SDGs: The Time to Act is Now (2021)
• Policy Brief: The Impact of COVID-19 on the Arab Region: An Opportunity to Build Back Better (2020)
• Debt and COVID-19: A Global Response in Solidarity (2020)

The initiative contributes to global initiatives:

• Financing for Development in the Era of COVID-19 and Beyond | United Nations