State Guarantee Restriction

State guarantees address market failures in areas of governmental interest, particularly by reducing financing costs for two major engines of growth: small and medium businesses and supporting local exporters. However, excessive use of state guarantees can be greatly burdensome since it is impossible for the state to accurately predict when and how much the state will need to pay.

Recognizing both the necessity and challenge of state guarantees, this research argues for the necessity of a restriction mechanism for state guarantees, in order to avoid irresponsible use of guarantees and to manage risk and minimize potential damage during a financial crisis.

Daniel Melzer
As  a fellow, Daniel interned at the State Guarantees Department within the Accountant General's Office at the Ministry of Finance. His research focused on the usage of governmental guarantees in different countries. Prior to joining the Milken Fellows Program, Melzer...
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.