Course Overview

Government guarantees—when not properly managed—can create hidden fiscal risks, undermine debt sustainability, and expose governments to large contingent liabilities. This course equips policymakers, debt‑management units, and fiscal‑risk practitioners with the tools to design, assess, monitor, and report government guarantees in line with World Bank and IMF best practices.

Participants learn how to evaluate guarantee proposals, price risks, set up governance frameworks, and integrate guarantees into broader fiscal‑risk and debt‑management strategies.

2. Learning Objectives

Participants will be able to:

• Understand the role, benefits, and risks of government guarantees.

• Apply World Bank and IMF frameworks for contingent‑liability management.

• Evaluate guarantee proposals using financial, economic, and risk‑based criteria.

• Design governance structures for issuing and monitoring guarantees.

• Price guarantees and estimate expected losses.

• Integrate guarantees into Medium‑Term Debt Strategies (MTDS) and fiscal‑risk statements.

• Strengthen reporting, transparency, and accountability mechanisms.

• Prepare guarantee‑management policies aligned with global standards.

3. Target Audience

• Ministries of Finance and Treasury departments

• Debt Management Offices (DMOs)

• Fiscal‑risk units and macro‑fiscal departments

• State‑Owned Enterprise (SOE) oversight units

• Public investment and PPP units

• World Bank–funded project teams

• Auditors, regulators, and public‑sector financial analysts

4. Detailed Course Outline

Module 1: Introduction to Government Guarantees

• Definition and types of government guarantees

• Why governments issue guarantees

• Benefits vs. risks

• World Bank and IMF perspectives on contingent liabilities

• Case studies of guarantee‑related fiscal crises

Module 2: Fiscal Risks & Contingent Liabilities

• Understanding explicit vs. implicit contingent liabilities

• Fiscal‑risk transmission channels

• Role of guarantees in public debt sustainability

• Tools for identifying and quantifying fiscal risks

• Integrating guarantees into fiscal‑risk statements

Module 3: Governance Framework for Government Guarantees

• Institutional arrangements for issuing guarantees

• Approval processes and decision‑making structures

• Legal and regulatory frameworks

• Roles of DMOs, SOE oversight units, and line ministries

• Transparency and accountability requirements

Module 4: Evaluating Guarantee Requests

• Screening and eligibility criteria

• Financial analysis of the beneficiary (SOE, PPP, private entity)

• Project viability and risk assessment

• Economic justification and public‑value assessment

• Environmental, social, and governance (ESG) considerations

Module 5: Risk Assessment & Pricing of Guarantees

• Identifying and categorizing risks (credit, operational, market, project)

• Quantitative methods for estimating expected losses

• Risk‑based pricing and guarantee fees

• Collateral, counter‑guarantees, and risk‑sharing mechanisms

• Stress testing and scenario analysis

Module 6: Monitoring & Managing Guarantee Portfolios

• Portfolio‑level risk monitoring

• Early‑warning indicators and performance tracking

• Reporting requirements and dashboards

• Managing calls on guarantees

• Restructuring and renegotiation processes

Module 7: Guarantees in Public Investment & PPPs

• Role of guarantees in PPP financing

• Government support instruments (GSIs)

• Managing fiscal risks in PPP contracts

• Evaluating PPP‑related contingent liabilities

• World Bank PPP and fiscal‑risk frameworks

Module 8: Integrating Guarantees into Debt & Fiscal Frameworks

• Guarantees and the Medium‑Term Debt Strategy (MTDS)

• Recording guarantees in debt databases (DMFAS, Meridian)

• Budgeting for guarantees and provisioning

• Reporting in financial statements and fiscal‑risk annexes

• IMF and World Bank reporting standards

Module 9: International Best Practices & Country Case Studies

• Lessons from countries with strong guarantee frameworks

• Failures and crises caused by poorly managed guarantees

• World Bank technical assistance examples

• Emerging trends in guarantee management

Module 10: Practical Exercises & Capstone Project

• Evaluating a sample guarantee request

• Conducting a risk assessment and pricing exercise

• Designing a guarantee‑issuance policy

• Building a guarantee‑monitoring dashboard

• Capstone: Develop a Government Guarantee Management Framework for a simulated country

5. Training Methodology

• Expert‑led lectures and guided discussions

• Hands‑on risk‑assessment and evaluation exercises

• Case studies from World Bank and IMF programs

• Group work and scenario‑based simulations

• Practical sessions on portfolio monitoring and reporting

• Capstone project with peer and instructor feedback

6. Deliverables & Outputs

Participants will receive:

• A Government Guarantee Management Toolkit (frameworks, templates, datasets)

• Guarantee evaluation and pricing tools

• Sample guarantee policies and fiscal‑risk statements

• Capstone project report and presentation

• Certificate of Completion from Regewall Training Institute