Debt sustainability concerns imply what for borrowing countries?

• A. Borrowing countries must be able to service debt without compromising fiscal stability.
• B. All debt must be forgiven.
• C. Debt should be incurred without conditions.
• D. Borrowing countries can default without consequences.

Answer: (A)

Debt sustainability is about whether a country can meet its debt-service obligations—interest and principal—without undermining fiscal stability and growth. When debt payments take up too large a share of government revenue, the state may have to cut essential services, raise taxes, or borrow again just to pay the debt, which can spiral into weaker growth and higher default risk. The central idea is that borrowing should be kept on a track where the country can comfortably service the debt while maintaining essential public priorities and macroeconomic stability.

So the best answer captures this: borrowing countries must be able to service debt without compromising fiscal stability. It’s not about forgiving all debt, eliminating conditions, or avoiding consequences for default; those aspects are not what debt sustainability focuses on.