Contingent Liability Management
A Study on India
Published on 1. January 2002
Book
Paperback/Softback
88 pages
978-0-85092-709-2 (ISBN)
Description
The sharp increase in the contingent liabilities of many developing countries in recent years and its possible implications has prompted a rethink in the way governments quantify their financial burdens. This publication looks at some of the issues germane to the identification, monitoring and valuation of external sector contingent liabilities of India. By focusing mostly on external-sector related contingent liabilities that involve possible financial transactions with non-residents, the document defines a framework for use in quantifying contingent liabilities, which can be adapted to other countries. This publication is the second in a series produced by the Commonwealth Secretariat on debt and debt related issues.
More details
Series
Language
English
Place of publication
London
United Kingdom
Target group
College/higher education
Professional and scholarly
Dimensions
Height: 240 mm
Width: 165 mm
ISBN-13
978-0-85092-709-2 (9780850927092)
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Schweitzer Classification
Content
Acknowledgements Foreword 1. Introduction Background The scope and structure of the report 2. Definitional and Conceptual Issues The fiscal risk matrix External sector contingent liabilities Contingent liabilities in the emerging economy context Public contingent liabilities in private infrastructure projects Independent Power Projects (IPP) and government guarantees A framework for monitoring contingent liabilities The valuation of contingent liabilities 3. Country Experiences when Dealing with Contingent Liabilities The key findings of country practices with regard to contingent liability management Issues relating to the definition of contingent liabilities The legal regime Accounting Recording, monitoring and management 4. Contingent Liabilities Relating to the Government of India's Guarantees on External Debt The classification and magnitude of contingent liabilities The magnitude of government guarantees on external debt External debt guarantees by economic sector Projected debt service payments on government-guaranteed external debt Government policy towards guarantees The impact of government guarantees: some empirical advice The risk of default on government-guaranteed external debt Contingent liabilities due to the exchange risk guarantee 5. Contingent Liabilities Relating to Infrastructure Investment Infrastructure investment in India The government of India's counter-guarantees for Independent Power Projects BOT projects on roads in India Contingent liabilities for telecommunications Contingent liabilities for ports Overall recommendations 6. Contingent Liabilities Relating to Banking, Financial Institutions and the Corporate Sectors of India The banking system Financial institutions The corporate sector 7. Concluding Observations and Recommendations Existing contingent liabilities New contingent liabilities List of Boxes List of Tables Appendices Appendix I: An Accounting Framework for Contingent Liabilities Appendix II: The Special Data Dissemination Standard and the Data Template on International Reserves/Foreign Currency Liquidity References