Toolkit for the Identification, Measurement, Monitoring, and Risk Management of Contingent Sovereign Liabilities
Sovereign contingent liabilities materialize when uncertain future events, which are largely beyond the State's control, occur. They can represent a significant burden for public finances and jeopardize public debt management and sustainability. This paper presents a toolkit for the identification and systematization, measurement, monitoring, and reporting of these liabilities. Based on the proposal of a general methodology, the toolkit develops specific estimation methodologies for different categories of sovereign contingent liabilities. These methodologies are then applied in hypothetical exercises, complemented with illustrations taken from the international context. Furthermore, to illustrate how the toolkit might be applied, the paper provides examples that test sensitivity to changes in the variables andparameters that affect contingent liabilities. The study demonstrates that the toolkit can help to achieve improved and better-informed management of public debt and sovereign contingent liabilities, as well as of their associated financial and fiscal risks.
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Technical Notes biblioteca |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Risk Management, Financial Market, Fiscal Policy, H68 - Forecasts of Budgets Deficits and Debt, H63 - Debt • Debt Management • Sovereign Debt, C65 - Miscellaneous Mathematical Tools, C51 - Model Construction and Estimation, E62 - Fiscal Policy, H81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts, |
| Online Access: | http://dx.doi.org/10.18235/0010628 https://publications.iadb.org/en/toolkit-identification-measurement-monitoring-and-risk-management-contingent-sovereign-liabilities |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|