Contingency Liability Management: A Study on India

by Das, Tarun; Bisen, Anil; Nair, M. R.; Kumar, Raj

• ISBN13: 9780850927092
• ISBN10: 0850927099
• Format: Paperback
• Copyright: 2003-11-01
• Publisher: Stylus Pub Llc

Summary

The sharp increase in the contingent liabilities of many countries in recent years and the change in the nature of the financial burden of the fiscal authorities have been primarily attributed to the transformation of the role of the state from a supplier of certain services to a facilitator, where the state extends guarantee to the private sector for providing services. Contingent liabilities featured prominently in the recent Asian crisis and stressed the need for countries to develop a framework to monitor these liabilities. However, despite the need to quantify contingent liabilities as a way of avoiding financial crisis, very few countries have developed a framework to monitor these liabilities. This report focuses on some of the issues germane to the identification, monitoring and valuation of external-sector related contingent liabilities. By focusing mostly on external-sector related contingent liabilities that involve possible financial transactions with non-residents in India, it develops a useful framework for use by other countries. This is a pioneering document in an area generating a lot of interest.

Table of Contents

Acknowledgements	p. 1
Foreword	p. 3
Introduction	p. 5
Definitional and Conceptual Issues	p. 9
Country Experiences when Dealing with Contingent Liabilities	p. 25
Contingent Liabilities Relating to the Government of India's Guarantees on External Debt	p. 29
Contingent Liabilities Relating to Infrastructure Investment	p. 39
Contingent Liabilities Relating to Banking, Financial Institutions and the Corporate Sectors of India	p. 55
Concluding Observations and Recommendations	p. 61
An Accounting Framework for Contingent Liabilities: Country Practices	p. 65
The Special Data Dissemination Standard and the Data Template on International Reserves/Foreign Currency Liquidity	p. 77
References	p. 83
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