A Framework for Managing Government Guarantees
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 ove...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/444621590552809834/A-Framework-for-Managing-Government-Guarantees http://hdl.handle.net/10986/33828 |
| 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. |
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