IMF Working Papers

Sovereign Asset and Liability Management in Emerging Market Countries: The Case of Uruguay

By André Amante, Phillip Anderson, Thordur Jonasson, Herman Kamil, Michael G. Papaioannou

December 27, 2019

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André Amante, Phillip Anderson, Thordur Jonasson, Herman Kamil, and Michael G. Papaioannou Sovereign Asset and Liability Management in Emerging Market Countries: The Case of Uruguay, (USA: International Monetary Fund, 2019) accessed September 19, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper provides an overview of the strategic and operational issues as well as institutional challenges, related to the implementation of the Sovereign Asset and Liability Management (SALM) approach. Application of an SALM framework allows the authorities to identify and monitor sovereign exposure mismatches; increase resilience to foreign currency and interest rate risks; and thus, strengthen financial stability; and implement more cost-effective management of the public-sector debt. The analysis is based on emerging market (EM) countries and illustrated by the experience of Uruguay, using data as of end-2017.

Subject: Asset and liability management, Currencies, Financial statements, Government asset and liability management, Government debt management, Money, Public debt, Public financial management (PFM)

Keywords: Applying SALM, Asset, Asset liability committee, Balance sheet, Balance sheet vulnerability, Balance-sheet risk, BCU balance sheet, Currencies, Currency, Currency position, Debt, Financial Risk, Financial statements, Foreign Exchange Hedging, Global, Government asset and liability management, Government balance sheet, Government debt management, Government Securities Markets, Liability committee, Long position, Public Debt Management, Risk exposure, SALM approach, SALM framework, Sovereign balance sheet, WP

Publication Details

  • Pages:

    40

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2019/290

  • Stock No:

    WPIEA2019290

  • ISBN:

    9781513511696

  • ISSN:

    1018-5941