caa a22 4500 397566328 CHVBK 20180308164829.0 cr unu---uuuuu 161202e199602 xx s 000 0 eng 10.1093/wbro/11.1.119 doi (NATIONALLICENCE)oxford-10.1093/wbro/11.1.119 VALUING AND ACCOUNTING FOR LOAN GUARANTEES [Elektronische Daten] [Ashoka Mody, Dilip K. Patro] To achieve certain policy objectives, governments frequently provide private borrowers with loan guarantees that cover some or all of the risk that the borrower will be unable to repay the loan. Such guarantees are extremely valuable, and their value increases with the riskiness of the underlying asset or credit, the size of the investment, and the duration of the loan. The flip side of a guarantee's value to a lender is its cost to the government. Such a cost is not explicit but is real nevertheless. When providing guarantees, governments therefore must establish accounting, valuation, and risk-sharing mechanisms. This article describes methods of valuing guarantees; reports estimates of the value of guarantees in different settings; and summarizes new methods of accounting designed to anticipate losses, create reserves, and channel funds through transparent accounts to ensure that the costs of guarantees are evident to government decisionmakers. © 1996 The International Bank for Reconstruction and Development/The World Bank Articles nationallicence Mody Ashoka aut Patro Dilip K. aut The World Bank Research Observer Oxford University Press 11/1(1996-02), 119-142 0257-3032 11:1<119 1996 11 wbro https://doi.org/10.1093/wbro/11.1.119 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1093/wbro/11.1.119 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Mody Ashoka aut NATIONALLICENCE 700 1- Patro Dilip K. aut NATIONALLICENCE 773 0- The World Bank Research Observer Oxford University Press 11/1(1996-02), 119-142 0257-3032 11:1<119 1996 11 wbro Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford