Public Debt: IMF Urges Mauritius to Enhance Transparency and Statistical Standards

The IMF report highlights deficiencies in the production of debt statistics, as the island's debt has surged from 64% to 86% of GDP in five years.

The figures are telling. Over five years, from December 2019 to June 2025, public debt rose from 64% to 86% of Gross Domestic Product (GDP), an increase of 22 percentage points. This alarming rise prompted the International Monetary Fund (IMF) in its viability analysis published last June to classify Mauritius among countries at high risk of sovereign crisis.

In this sensitive context, a technical assistance report from the IMF, released this month, assesses the quality of Mauritius's public debt statistics and makes several recommendations aimed at improving the transparency of the island's public finances. This report follows a request from Mauritian authorities and is part of a two-year regional project aimed at strengthening public debt statistics in several African countries.

The IMF mission, which visited Mauritius from September 4 to 12, 2025, provided a nuanced assessment. On one hand, Mauritius's public debt statistics are generally accurate, consistent, and regularly updated. The island adheres to the IMF's Special Data Dissemination Standard (SDDS) and submits its figures quarterly to the joint IMF-World Bank database on quarterly public sector debt statistics. Thus, there is already a structured institutional framework for the production and dissemination of statistical information.

On the other hand, the report—which does not reflect a political stance but rather a set of technical advice—identifies several areas for improvement, particularly regarding the alignment of national practices with international statistical standards. The institution recommends broadening the scope of public sector debt reporting and enhancing transparency regarding compilation methods.

Specifically, the IMF advocates for the publication of detailed information on the methods and assumptions used to compile debt tables, as well as the introduction of an advanced publication schedule to provide greater visibility to data users. The institution also stresses the need to properly apply conversion rules for debt denominated in foreign currencies, which must be converted into the national currency using the average rate between the buying and selling prices on the reference date, in line with international standards.

Structural Weakness

Beyond these methodological aspects, the report highlights a concerning structural weakness: operational constraints within the Public Debt Management Unit (PDMU). This unit, responsible for both debt management and the production of statistical reports, currently has only eight employees.

For the IMF, this situation poses a risk to operational continuity and limits the administration's capacity to develop and improve existing public sector debt reports. This understaffing contrasts sharply with the scale of the issues, particularly in a context where debt has increased by more than one-fifth of GDP in five years, a direct consequence of the COVID-19 pandemic.

Beyond technical aspects, the document sheds light on a broader issue: the credibility of budgetary and financial information. For the IMF, improving public debt statistics is a crucial lever to enhance macroeconomic surveillance, inform economic policy decisions, and foster a better understanding of risks by markets, international partners, and the public.

In a context where Mauritius is now classified among countries at high risk of sovereign crisis, this transparency is no longer just a technical or administrative issue. It has become a matter of trust for investors and international institutions.