TARGET GROUP | International providers of technical assistance in debt and guarantees’ management, and mid-level officials from developing countries and transition economies working on management of direct contingent liabilities of the central government.
DESCRIPTION | Managing government guarantees is difficult because the costs of guarantees are hard to estimate and typically do not show up in the reported budget deficit or level of public debt. A good framework for managing guarantees can help governments overcome the difficulty by, among other things, creating for guarantees some of discipline and transparency that the budget and the monitoring of public debt create for ordinary government spending. These management options are best supported by having quantitative estimates of the potential guarantee payments. A scenario risk assessment tool has been designed by the World Bank to assist authorities in undertaking credit risk assessment of guarantees.
OBJECTIVES | This one-week course aims to achieve dual objectives: (i) acquaint participants with the core building blocks for development of a sound framework for management of debt guarantees, and (ii) allow participants to understand and apply the scenario analysis tool design to assist government authorities with assessment of credit risk of new and outstanding loan guarantees. By the end of the course, participants should understand the legal and institutional requirements which must be in place for prudent management of risks associated with government guarantees, as well as be able to apply scenario analysis tool and guide. The course format includes presentations and hands-on exercises with discussions of operational application of scenario analysis across several economic sectors. It will enable participants to learn how to apply the stress testing approach to quantifying the risk of potential payments from guarantees. The approach is designed to be easy to use, and there are accompanying Excel models and a methodological guide.
End: Feb 04
Sponsoring Organization: IBRD
Application Deadline: By invitation only