Collateralized Transactions: Key Considerations for Public Lenders and Borrowers
Policy Papers, February 19, 2020
Source details
- Canonical URL
- Collateralized Transactions: Key Considerations for Public Lenders and Borrowers
Other formats
Bibliographic details
- Published: February 19, 2020
- Series: Policy Papers
- Volume: 2020
- Issue: 010
- Pages: 16
- DOI: https://doi.org/10.5089/9781513530703.007
- Stock No: PPEA2020010
- ISBN: 9781513530703
- ISSN: 2663-3493
Overview and Purpose
- Provides a framework for public lenders and borrowers to assess collateralized financing practices from a development perspective.
- Prepared in response to a request from the G20 IFA Working Group.
- Draws on work of the IMF and World Bank.
Key Findings
- The availability of collateralized financing can be beneficial to a developing country borrower under a range of circumstances.
- The analysis also points to pitfalls associated with collateralized financing that can affect development outcomes.
Scope and Subjects Covered
- Subjects: Collateral, Government debt management, Loans, Oil, Securities
- Keywords: asset, borrower, lender, PP, receivables
- Publication details:
- Pages: 16
- Volume: 2020
- Issue: 010
- Series: Policy Paper No. 2020/010
- DOI: https://doi.org/10.5089/9781513530703.007
- Stock No: PPEA2020010
- ISBN: 9781513530703
- ISSN: 2663-3493
- Publication date: February 19, 2020
Implications for Policy and Practice
- Public lenders and borrowers should use the provided framework to:
- Assess when collateralized financing may yield net benefits for development objectives.
- Identify and mitigate potential pitfalls associated with collateralization of assets (including oil, receivables, and securities).
- Integrate collateral considerations into government debt management strategies.
Recommended Use
- Use the note as a practical assessment tool to inform decisions on collateralized transactions in public financing, taking into account country-specific development goals and risk exposures.
International Monetary Fund and World Bank. Collateralized Transactions: Key Considerations for Public Lenders and Borrowers. Policy Paper No. 2020/010 (February 19, 2020).
Content in this bundle
- Policy Paper