Debt overhang may impede a country's investment and growth. Accordingly, the World Bank initiated debt relief programs. However, doubts have been raised regarding the empirical validity of the debt overhang hypothesis. We employ panel data for testing the existence of debt overhang for Latin...

Our previous assessment of debt sustainability in developing Asia, conducted in 2011, found that the region's fiscal outlook was mostly benign. In this study we update the debt sustainability assessment, taking stock of the latest data and including a larger number of countries. With the benefit...