The Economist's article on the signed Cyprus bailout program. It says "...The creditors were helped by the IMF’s view that too big a loan would simply make Cyprus’s debt unsustainable." I would interpret this statement as: high reliance on official loans limits the window for market access, posing a challenge on future debt financing and thus debt sustainability. Now that we live in a period of debt crisis, you may feel it is an easy task to pinpoint the obvious link between DSA and debt management strategy, while this linkage has been often omitted with over-simplified financing assumptions in a standard DSA. In the post-crisis era in particular, capital market factors are playing a key role here, if not constitute a condition for sustainable debt.
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