Management and Evaluation of Credit risks from SOEs and Government Guarantees

MEGG

TARGET GROUP | High 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 the discipline and transparency that the budget and the monitoring of public debt create for ordinary government spending. Similar risks are noted while monitoring the debt of state-owned enterprises (SOEs) and on-lending debt portfolio, which create implicit continent liabilities to the government.

OBJECTIVES | This one-week course aims to achieve dual objectives: (i) acquaint participants with the core building blocks for the development of a sound framework for management of debt guarantees and monitoring of SOEs debt, and (ii) allow participants to understand and apply quantitative tools designed to assist government authorities with the assessment of the credit risk of such financial instruments. 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 credit risk assessment tools. The course format includes presentations and hands-on exercises with discussions of operational application of scenario analysis, SOEs credit risk, etc.. 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.

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Course Details

Start: 20250414Apr 14
End: 20250418Apr 18

Language: English

Sponsoring Organization: IBRD

Admin Arrangements


Application Deadline: By invitation only

How to apply