Assessing Public Sector Borrowing Collateralized on Future Flow Receivables

Assessing Public Sector Borrowing Collateralized on Future Flow Receivables

Prepared by FAD, ICM, LEG, and PDR
(in consultation with other departments)

Approved by Timothy Geithner, François Gianviti, Gerd Haeusler, and Teresa Ter-Minassian

June 11, 2003

Use the free Adobe Acrobat Reader to view the full text (293 kb pdf file)

Contents

I.	Introduction

II.	Characteristics of Collateralized Future Receipts Arrangements
	A.	Characteristics of a Typical Collateralized Future Receipts Arrangement
	B.	Some Stylized Facts on Collateralized Borrowing
	C.	Creditworthiness and Collateralized Borrowing

III.	Considerations in Assessing Collateralized Future Receipts Arrangements
	A.	Legal Issues
	B.	Capital Market Issues
	C.	Fiscal and Other Macroeconomic Issues
	D.	Fiscal Structural Issues

IV.	Program Design and Procedural Issues

V.	Conclusion

Text Table
	1.	Collateralized Bonds and Loans of Selected Countries

Figures
	1.	Structure of a Typical Indirect Collateralized Future Receipts Arrangement
	2.	Bonds and Loans Issued Annually by Emerging Markets
	3.	Collateralized Borrowing of Oil Exporters by Income Level
	4.	Collateralized Bonds and Loans as a Share of Total Borrowing of Selected Countries

Boxes
	1.	Subnational Government Collateralization of Future Revenue—The Case of Tucuman Province, Argentina
	2.	Eurostat and the Italian Government’s Borrowing Against Future Lottery Receipts
	3.	Fund Advice on Sovereign and Public Enterprise Collateralized Borrowing in Selected Countries

Appendix
	1.	The IBRD’s Negative Pledge Clause

References