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The sharp increase in the contingent liabilities of many developing countries in recent years and its possible implications has prompted a rethink in the way governments quantify their financial burdens. This publication looks at some of the issues germane to the identification, monitoring and valuation of external sector contingent liabilities of India. By focusing mostly on external-sector related contingent liabilities that involve possible financial transactions with non-residents, the document defines a framework for use in quantifying contingent liabilities, which can be adapted to other countries. This publication is the second in a series produced by the Commonwealth Secretariat on debt and debt related issues.
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