Course Overview

This program equips policymakers, fiscal analysts, and PFM practitioners with the tools to design, manage, monitor, and evaluate government guarantees in line with international best practices. Government guarantees—when poorly managed—pose significant fiscal risks, but when well‑designed, they can catalyze private investment, support infrastructure development, and enhance credit access.

The course aligns with World Bank Fiscal Risk Management Framework, IMF Fiscal Transparency Code, and OECD guidelines on contingent liabilities and risk management.

2. Learning Objectives

Participants will be able to:

• Understand the nature, purpose, and risks of government guarantees.

• Apply international frameworks for managing contingent liabilities.

• Design guarantee instruments that balance development impact and fiscal prudence.

• Evaluate the fiscal cost and risk exposure of guarantees.

• Establish governance, approval, and monitoring systems for guarantees.

• Integrate guarantees into fiscal risk statements and medium‑term fiscal frameworks.

• Prepare reporting and disclosure documents aligned with World Bank standards.

3. Target Audience

• Ministry of Finance and Treasury officials

• Debt management and fiscal risk units

• Public investment and PPP units

• Central bank and financial sector regulators

• State‑owned enterprise (SOE) oversight units

• World Bank–funded project teams

• Auditors, accountants, and PFM specialists

• Researchers and policy analysts

4. Detailed Course Outline

Module 1: Introduction to Government Guarantees

• Definition and types of government guarantees

• Role of guarantees in development and public investment

• Guarantees vs. direct borrowing vs. subsidies

• World Bank and IMF perspectives on contingent liabilities

• Case studies of successful and failed guarantee programs

Module 2: Fiscal Risks & Contingent Liabilities

• Nature of explicit and implicit contingent liabilities

• Fiscal risk transmission channels

• Macroeconomic implications of poorly managed guarantees

• Tools for identifying and assessing fiscal risks

• Integrating guarantees into fiscal risk statements

Module 3: Legal, Institutional & Governance Frameworks

• Legal basis for issuing government guarantees

• Institutional arrangements and approval processes

• Roles of ministries, SOEs, regulators, and oversight bodies

• Governance principles: transparency, accountability, and control

• International best practices (OECD, World Bank, IMF)

Module 4: Designing Government Guarantees

• Types of guarantees: loan guarantees, PPP guarantees, performance guarantees

• Structuring guarantees to minimize fiscal exposure

• Pricing guarantees and risk‑based fees

• Eligibility criteria and due diligence

• Development impact assessment

Module 5: Risk Assessment & Evaluation Tools

• Quantifying fiscal exposure and expected losses

• Scenario analysis and stress testing

• Credit risk assessment for beneficiaries

• Evaluating SOE and PPP project risks

• Tools for guarantee valuation (probability‑based models)

Module 6: Monitoring & Reporting of Guarantees

• Guarantee registers and tracking systems

• Monitoring beneficiary performance and compliance

• Early warning indicators for guarantee calls

• Reporting requirements under World Bank and IMF frameworks

• Disclosure practices and transparency standards

Module 7: Managing Guarantee Calls & Fiscal Impact

• Procedures for handling guarantee calls

• Budgeting for guarantee payments

• Provisioning and setting aside fiscal buffers

• Impact on debt sustainability and fiscal space

• Integrating guarantees into MTFF and DSA frameworks

Module 8: Guarantees in PPPs & SOEs

• Guarantees in public‑private partnerships (PPPs)

• Government support packages for infrastructure projects

• SOE guarantees and quasi‑fiscal risks

• Managing risks from state‑owned enterprises

• Case studies from emerging and developing economies

Module 9: Climate, Green Finance & Innovative Guarantees

• Guarantees for climate‑resilient and green investments

• Blended finance and risk‑sharing instruments

• Guarantees for renewable energy and climate adaptation projects

• Mobilizing private capital through guarantee schemes

• Global examples of climate‑related guarantee programs

Module 10: Practical Exercises & Capstone Project

• Developing a government guarantee policy framework

• Conducting a fiscal risk assessment for a proposed guarantee

• Designing a monitoring and reporting system

• Preparing a guarantee valuation and risk analysis

• Capstone: Draft a Government Guarantee Management Strategy for a simulated country

5. Training Methodology

• Expert‑led lectures and guided discussions

• Hands‑on fiscal risk modelling and valuation exercises

• Case studies from World Bank and IMF programs

• Group work and scenario‑based simulations

• Practical sessions on guarantee registers, reporting, and governance

• Capstone project with peer and instructor feedback

6. Deliverables & Outputs

Participants will receive:

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

• Guarantee valuation and fiscal risk assessment tools

• Sample guarantee policies, registers, and reporting templates

• Capstone project report and presentation

• Certificate of Completion from Regewall Training Institute