QUESTION $1$: Handwritten

$($a$)$ Critically discuss the Classic and Bohn$$s debt sustainability analysis frameworks. $[15$ marks$]$

$($b$)$ Discuss the drastic measures necessary to check the rapid growth of current and future

liabilities of governments and reduce their adverse consequences for long$-$term growth

and monetary stability. $[15$ marks$]$

$($c$)$ Most developing and emerging economies are increasingly relying on debt to finance

development programmes. Discuss the potential risks and challenges associated with

this initiative. $[15$ marks$]$

QUESTION $2$: TYPED

Evaluate and analyse sovereign debt management strategies adopted by a selected country,

considering their economic context, policy objectives, and the implications for fiscal

sustainability and macroeconomic stability.

$1.$ Provide a brief overview of sovereign debt, including definitions, types of debt

instruments, and key stakeholders involved in debt management $($e$.$g$.,$ government,

central bank, debt management office, international creditors$).[15$ marks$]$

$2.$ Assess the current status of the selected country's sovereign debt, including the size of

the debt burden, composition of debt $($e$.$g$.,$ domestic vs$.$ external$),$ debt sustainability

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indicators $($e$.$g$.,$ debt$-$to$-$GDP ratio, debt service ratios$),$ and recent trends in debt

accumulation. $[15$ marks$]$

$3.$ Examine the institutional framework and policy framework for sovereign debt

management in the selected country. Evaluate the effectiveness of existing policies,

regulations, and practices in managing sovereign debt risks, ensuring fiscal discipline,

and promoting financial stability. $[20$ marks$]$

$4.$ Compare the selected country's debt management practices with international best

practices and benchmarks. Identify areas of alignment and divergence, considering

factors such as debt transparency, risk management, debt restructuring mechanisms,

and governance arrangements. $[15$ marks$]$

$5.$ Analyse the key challenges and risks facing the selected country in managing its

sovereign debt. Consider factors such as economic vulnerabilities, fiscal constraints,

external shocks, contingent liabilities, and potential debt sustainability concerns. $[20$

marks$]$

$6.$ Based on the analysis conducted, provide recommendations for improving the selected

country's sovereign debt management strategy. Propose specific policy measures,

institutional reforms, and risk mitigation strategies to enhance debt sustainability,

reduce vulnerabilities, and strengthen fiscal resilience. $[20$ marks$]$

Further instructions on question two:

$($i$).$ The assignment should be structured as a formal report, following academic writing

conventions $($e$.$g$.,$ introduction, methodology, analysis, conclusion, references$).$

$($ii$).$ Use relevant data, charts, tables, and references to support your analysis and arguments.

$($iii$).$The assignment should be submitted electronically in Word and PDF format by $30$ April

$2024.$

$($iv$).$Ensure proper citation and referencing of sources following the required academic style

$($e$.$g$.,$ APA, Harvard$).$

ASSESSMENT CRITERIA:

$($i$).$ Clarity and coherence of the analysis

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$($ii$).$ Depth of understanding of sovereign debt management concepts

$($iii$).$Critical evaluation of the selected country's debt management framework

$($iv$).$Use of evidence and data to support arguments

$($v$).$ Originality and creativity in recommendations