diff --git a/modules/23_capitalMarket/debt_limit/datainput.gms b/modules/23_capitalMarket/debt_limit/datainput.gms
new file mode 100644
index 0000000000000000000000000000000000000000..f14d2d3aad8194d738f4cade98aca59a2827e132
--- /dev/null
+++ b/modules/23_capitalMarket/debt_limit/datainput.gms
@@ -0,0 +1,21 @@
+*** |  (C) 2006-2019 Potsdam Institute for Climate Impact Research (PIK)
+*** |  authors, and contributors see CITATION.cff file. This file is part
+*** |  of REMIND and licensed under AGPL-3.0-or-later. Under Section 7 of
+*** |  AGPL-3.0, you are granted additional permissions described in the
+*** |  REMIND License Exception, version 1.0 (see LICENSE file).
+*** |  Contact: remind@pik-potsdam.de
+*** SOF ./modules/23_capitalMarket/perfect/datainput.gms
+
+pm_ies(regi) = 1;
+pm_risk_premium(regi) = 0.0;
+p23_debt_growthCoeff(regi) = 0.2 ;
+
+parameter pm_nfa_start(all_regi)       "initial net foreign asset"
+/
+$ondelim
+$include "./modules/23_capitalMarket/perfect/input/pm_nfa_start.cs4r"
+$offdelim
+/
+;
+
+*** EOF ./modules/23_capitalMarket/perfect/datainput.gms
diff --git a/modules/23_capitalMarket/debt_limit/declarations.gms b/modules/23_capitalMarket/debt_limit/declarations.gms
new file mode 100644
index 0000000000000000000000000000000000000000..6f3fad2dcbf214ffd8515cae4d5babe8b96cddc4
--- /dev/null
+++ b/modules/23_capitalMarket/debt_limit/declarations.gms
@@ -0,0 +1,24 @@
+*** |  (C) 2006-2019 Potsdam Institute for Climate Impact Research (PIK)
+*** |  authors, and contributors see CITATION.cff file. This file is part
+*** |  of REMIND and licensed under AGPL-3.0-or-later. Under Section 7 of
+*** |  AGPL-3.0, you are granted additional permissions described in the
+*** |  REMIND License Exception, version 1.0 (see LICENSE file).
+*** |  Contact: remind@pik-potsdam.de
+*** SOF ./modules/23_capitalMarket/perfect/declarations.gms
+
+Parameters
+
+pm_ies(all_regi)           "intertemporal elasticity of substitution"
+pm_risk_premium(all_regi)  "risk premium that lowers the use of capital imports"
+;
+
+Parameters
+  p23_debt_growthCoeff(all_regi) "maximum indebtness growth as share of GDP"
+;
+
+Equations
+  q23_limit_debt_growth(ttot,all_regi)        "debt growth constraint"
+  q23_limit_surplus_growth(ttot,all_regi)     "surplus growth constraint"
+;
+
+*** EOF ./modules/23_capitalMarket/perfect/declarations.gms
diff --git a/modules/23_capitalMarket/debt_limit/equations.gms b/modules/23_capitalMarket/debt_limit/equations.gms
new file mode 100644
index 0000000000000000000000000000000000000000..2ad0d8a9a2f44ff83fef0428fbffa050eadf12be
--- /dev/null
+++ b/modules/23_capitalMarket/debt_limit/equations.gms
@@ -0,0 +1,21 @@
+*** |  (C) 2006-2019 Potsdam Institute for Climate Impact Research (PIK)
+*** |  authors, and contributors see CITATION.cff file. This file is part
+*** |  of REMIND and licensed under AGPL-3.0-or-later. Under Section 7 of
+*** |  AGPL-3.0, you are granted additional permissions described in the
+*** |  REMIND License Exception, version 1.0 (see LICENSE file).
+*** |  Contact: remind@pik-potsdam.de
+*** SOF ./modules/23_capitalMarket/imperfect/equations.gms
+
+q23_limit_debt_growth(t,regi)..
+       vm_cesIO(t,regi,"inco") * p23_debt_growthCoeff(regi)
+       =g=
+       vm_Mport(t,regi,"good") - vm_Xport(t,regi,"good") + SUM(tradePe, (pm_pvp(t,tradePe)/(pm_pvp(t,"good")+0.000000001))*(vm_Mport(t,regi,tradePe)- vm_Xport(t,regi,tradePe))) + 
+	(pm_pvp(t,"perm")/(pm_pvp(t,"good")+0.000000001)) * (vm_Mport(t,regi,"perm") - vm_Xport(t,regi,"perm"));
+
+q23_limit_surplus_growth(t,regi)..
+       -1.0 * vm_cesIO(t,regi,"inco") * p23_debt_growthCoeff(regi)
+       =l=
+       vm_Mport(t,regi,"good") - vm_Xport(t,regi,"good") + SUM(tradePe, (pm_pvp(t,tradePe)/(pm_pvp(t,"good")+0.000000001))*(vm_Mport(t,regi,tradePe)- vm_Xport(t,regi,tradePe))) + 
+	(pm_pvp(t,"perm")/(pm_pvp(t,"good")+0.000000001)) * (vm_Mport(t,regi,"perm") - vm_Xport(t,regi,"perm"));
+
+*** EOF ./modules/23_capitalMarket/imperfect/equations.gms 
diff --git a/modules/23_capitalMarket/debt_limit/not_used.txt b/modules/23_capitalMarket/debt_limit/not_used.txt
new file mode 100644
index 0000000000000000000000000000000000000000..664ab78f20311ebfb7681a1465378b2e281038da
--- /dev/null
+++ b/modules/23_capitalMarket/debt_limit/not_used.txt
@@ -0,0 +1,9 @@
+# |  (C) 2006-2019 Potsdam Institute for Climate Impact Research (PIK)
+# |  authors, and contributors see CITATION.cff file. This file is part
+# |  of REMIND and licensed under AGPL-3.0-or-later. Under Section 7 of
+# |  AGPL-3.0, you are granted additional permissions described in the
+# |  REMIND License Exception, version 1.0 (see LICENSE file).
+# |  Contact: remind@pik-potsdam.de
+name,type,reason
+pm_prtp,input,questionnaire
+cm_prtpScen,input,questionnaire
diff --git a/modules/23_capitalMarket/debt_limit/realization.gms b/modules/23_capitalMarket/debt_limit/realization.gms
new file mode 100644
index 0000000000000000000000000000000000000000..1f1cdf978b0e9f5db92bb0384f0fd5d9b6ffb8ae
--- /dev/null
+++ b/modules/23_capitalMarket/debt_limit/realization.gms
@@ -0,0 +1,23 @@
+*** |  (C) 2006-2019 Potsdam Institute for Climate Impact Research (PIK)
+*** |  authors, and contributors see CITATION.cff file. This file is part
+*** |  of REMIND and licensed under AGPL-3.0-or-later. Under Section 7 of
+*** |  AGPL-3.0, you are granted additional permissions described in the
+*** |  REMIND License Exception, version 1.0 (see LICENSE file).
+*** |  Contact: remind@pik-potsdam.de
+*** SOF ./module/23_capitalMarket/perfect.gms
+
+*'
+*' @description
+*' The debt_limit realization assumes restricted capital mobility represented by a debt constraints.
+
+*'
+*' @limitations
+*' The resulting consumption paths and current accounts in initial periods fit roughly to empirical data,
+*' but not as well as with imperfect market realization.
+
+*####################### R SECTION START (PHASES) ##############################
+$Ifi "%phase%" == "declarations" $include "./modules/23_capitalMarket/perfect/declarations.gms"
+$Ifi "%phase%" == "datainput" $include "./modules/23_capitalMarket/perfect/datainput.gms"
+*######################## R SECTION END (PHASES) ###############################
+
+*** EOF ./module/23_capitalMarket/perfect.gms