Franklin

A Framework for Managing Government Guarantees [electronic resource] / Lilia Razlog.

Author/Creator:
Razlog, Lilia.
Publication:
Washington, D.C. : The World Bank, 2020.
Format/Description:
Government document
Book
Series:
Other papers.
World Bank e-Library
Other papers.
Status/Location:
Loading...

Options
Location Notes Your Loan Policy

Details

Other Title:
World Bank other research.
Local subjects:
Debt Management. (search)
Debt Markets. (search)
Finance and Financial Sector Development. (search)
Governance. (search)
Public and Municipal Finance. (search)
Public Sector Development. (search)
Summary:
Managing government debt guarantees is difficult because the potential costs of guarantees are hard to estimate and typically do not show up in the reported budget deficit. A good framework for managing guarantees can, however, help governments overcome the difficulty and enhance the transparency of guarantees. This paper sets out a checklist of issues for a government to consider when designing or revisiting its framework for managing guarantees. The checklist comprises: (1) steps to establish macroeconomic control over guarantees by setting limits on their use and restricting the authorization to grant them; (2) steps to improve decisions to grant individual guarantees by means of guidelines, restrictions, conditions, cost estimation, guarantees fees, and a structured process for making the decisions; and (3) steps to ensure careful management after the granting of guarantees, including the recording and reporting of guarantees, arrangements to pay when necessary, and learning from past experience.
Contributor:
Irwin, Tim.
Marrison, Chris.
Publisher Number:
10.1596/33828
Access Restriction:
Restricted for use by site license.