Several Pacific nations have experienced a spike in public debt in recent years due to Covid-related border closures, trade disruptions, and climate-related disasters. Vanuatu, like its regional counterparts, was substantially affected. But its fiscal situation remained manageable, mostly because it was able to draw upon large cash reserves built up before the pandemic.
Vanuatu’s debt outlook, however, could rapidly deteriorate. Although the latest debt sustainability analysis conducted by the International Monetary Fund assesses the…
