## 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](https://www.imf.org/en/publications/policy-papers/issues/2020/02/19/collateralized-transactions-key-considerations-for-public-lenders-and-borrowers-49063)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2020/02/19/collateralized-transactions-key-considerations-for-public-lenders-and-borrowers-49063/index.md)
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## 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

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### 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).*

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## Content in this bundle

- **Policy Paper**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2020/02/19/collateralized-transactions-key-considerations-for-public-lenders-and-borrowers-49063_