Managing sovereign loans: Building up from the basics – World Bank

Sovereign loans are an important source of financing for countries around the world. Borrowing can enable governments to support key areas for growth and development, such as healthcare, education, infrastructure and the green transition. Yet, managing public loans can be complex and challenging with potential impact on countries finances and their people. Errors and inaccuracies in monitoring can have large financial and reputational implications. 

Loans follow a different dynamic from securities. Because they are not traded publicly, they tend to be less standardized. Debt managers need to fully understand the terms and conditions applicable to each debt instrument down to the tranche level to ensure that cash flows are broken down …

Read the full article at: https://blogs.worldbank.org/developmenttalk/managing-sovereign-loans-building-basics