MFC Policy paper: Debt, Borrowing and Over-indebtedness: a Country-Level Monitoring Framework, 2014
A review of debt burden and over-indebtedness issues shows that debt is a very complex phenomenon, which has economic impact on growth, and a social impact on the well-being of individuals and households. A lot of research and data is available on the topic offering insights into different aspects of indebtedness. What is missing is a higher level, “big picture” approach to consolidate these various strands of findings and policy initiatives, and provide higher level guidance for policy-makers and advocacy groups. The paper proposes setting up “Debt Watch” mechanism in each country for systematic revision of national policies, actions and gaps in addressing over-indebtedness issues.