World Bank2013-02-282013-02-282010-12https://hdl.handle.net/10986/12586The Government of Indonesia has expressed interest in the World Bank's help in determining the best options for financing mechanisms to support public-private partnership (PPP) development. The Government would like to explore wholesale-type approaches via the establishment of a guarantee fund with financial support from the Bank and other multilateral institutions. This note discusses how the guarantee fund and the Bank's support will best work, presentation of options, how this concept relates to the current work on risk management strategies, and relevant international experience. After describing the background behind Indonesia s need for a guarantee fund, the report goes over possible steps in establishing a fund, and compares other governments experiences. Next, the concept of a government-sponsored guarantee fund is defined, along with its risks and benefits. The World Bank can provide advisory and financial support in the establishment of the guarantee fund. The last section describes the next steps to be taken by the government of Indonesia.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING PRINCIPLESADBADVISORY WORKAMORTIZATIONAMOUNT DUEAMOUNT OF DEBTAPPROVAL PROCESSARBITRATIONBALANCE SHEETBANK ASSISTANCEBANK DEPOSITSBANK EXPOSUREBANK GUARANTEEBANK GUARANTEESBANK LOANBANK LOANSBANK MANAGEMENTBANK POLICIESBANKING MARKETBENEFICIARIESBENEFICIARYBIDBONDBOND INVESTORSBOND ISSUANCEBOND OBLIGATIONSBONDHOLDERSBONDSBORROWERBUDGETINGBUSINESS PEOPLECALL DATECAPITAL ASSETSCAPITALIZATIONCASH FLOWSCASH PAYMENTSCLAIMCLAIM PAYMENTCLAIM PAYMENTSCOMMERCIAL BORROWINGCOMMERCIAL CREDITORSCOMMERCIAL DEBTCOMMERCIAL LENDERSCOMPETITIVE BIDDINGCONCESSIONCONTINGENT LIABILITIESCONTINGENT LIABILITYCONTRACTUAL OBLIGATIONSCOUNTRY RISKSCOVERAGE RATIOCREDIBILITYCREDIT GUARANTEECREDIT GUARANTEESCREDIT RATINGCREDIT RATINGSCREDIT RISKCREDIT RISKSCREDIT WORTHINESSCREDITORCREDITORSCREDITWORTHINESSDEBTDEBT FINANCINGDEBT GUARANTEESDEBT INSTRUMENTDEBT INVESTMENTSDEBT MANAGEMENTDEBT MATURITYDEBT SERVICEDEBT SERVICESDEFAULTSDEPOSITDEPOSIT INSURANCEDEPOSIT INSURANCE CORPORATIONDEVELOPING COUNTRYDIRECT LOANSDISBURSEMENTDIVERSIFICATIONDONOR RESOURCESDONOR SUPPORTDUE DILIGENCEECONOMIC GROWTHELIGIBILITY CRITERIAELIGIBLE BORROWERSELIGIBLE LOANSEQUITY INVESTMENTSEQUITY INVESTORSEQUITY STAKEEVENT OF DEFAULTEXCESSIVE RISKSEXPENDITUREEXPROPRIATIONFACE AMOUNTFINANCESFINANCIAL ASSISTANCEFINANCIAL CAPACITYFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL POSITIONFINANCIAL REPORTINGFINANCIAL RISKSFINANCIAL SUPPORTFINANCIAL VIABILITYFINANCIERSFINANCING REQUIREMENTSFISCAL CONSTRAINTSFISCAL SUPPORTFIXED INCOMEFIXED INCOME SECURITIESFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEGOOD GOVERNANCEGOVERNANCE ISSUEGOVERNANCE STRUCTUREGOVERNMENT FINANCINGGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT OBLIGATIONSGOVERNMENT OWNERSHIPGOVERNMENT SUBSIDIESGOVERNMENT SUPPORTGUARANTEE FEEGUARANTEE FEESGUARANTEE FUNDGUARANTEE FUNDSGUARANTEE PAYMENTSGUARANTEE PRODUCTSGUARANTEE SUPPORTGUARANTEE] PAYMENTGUARANTORINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINSTRUMENTINSURANCE CORPORATIONINSURERINSURERSINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATEINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETSINVESTMENT OPPORTUNITIESINVESTMENT PROJECTSISSUANCEISSUANCE OF GUARANTEESJOINT STOCK COMPANYJUDICIAL PROCESSJUDICIAL SYSTEMLEASE AGREEMENTLENDERSLEVERAGELIABILITY SIDELIQUID ASSETSLIQUIDITYLIQUIDITY RISKLIQUIDITY RISKSLOANLOAN TERMSLOCAL CURRENCYLOCAL DEBTLOCAL DEBT MARKETSMARKET CONDITIONSMATURITYMATURITY DATENEGOTIATIONNONPAYMENTOPERATING COSTSPARTIAL CREDITPARTIAL GUARANTEESPARTIAL RISKPAYMENT OBLIGATIONPAYMENT OBLIGATIONSPOLITICAL RISKPOLITICAL RISKSPORTFOLIOPRESENT VALUEPRINCIPAL PAYMENTPRINCIPAL REPAYMENTPRIVATE CAPITALPRIVATE CORPORATE DEBTPRIVATE EQUITYPRIVATE FINANCIAL INSTITUTIONSPRIVATE FINANCINGPRIVATE INFRASTRUCTUREPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATE SECTOR DEBTPUBLIC BORROWINGPUBLIC FINANCINGPUBLIC INVESTMENTPUBLIC SERVICESRATE OF RETURNRECEIVABLESREGULATORY FRAMEWORKSREPAYMENTRISK CAPITALRISK MANAGEMENTRISK MANAGEMENT STRATEGIESRISK MITIGATIONRISK OF DEBTRISK SHARINGSALARIESSEIZURESENIOR DEBTSETTLEMENTSHAREHOLDERSOCIAL WELFARESOLVENCYSPECIFIC DEBTSTOCKSSUPPORT INFRASTRUCTURETRANSACTIONTRANSACTION COSTSTRANSPORTUSER CHARGESWATER SUPPLYWORKING CAPITALWorld Bank10.1596/12586