Fiscal Risk Management Tools for Latin America

Fiscal Risks Tools Seminar WHD
Posted by Laura Torrent, Lesley Fisher, and Alvaro Manoel[1]

As a result of the COVID-19 pandemic, Latin American and Caribbean countries have suffered from reduced fiscal revenues in addition to increased spending, borrowing, called guarantees, and support for state-owned enterprises (SOEs). These trends have increased fiscal risks and deficits.[2] The pandemic has highlighted the need to strengthen fiscal management institutions and infrastructure to mitigate the negative impact on the countries’ growth and fiscal sustainability.

In April 2021, the Fiscal Affairs Department (FAD) and the IMF’s Central America, Panama and the Dominican Republic Technical Assistance Centre (CAPTAC-DR) delivered a regional workshop on Fiscal Risk Management Tools, attended by 71 participants from 17 countries. The main objectives were to share countries’ experiences in managing fiscal risks and discuss some of the tools recently developed by FAD. Four tools were presented:

The workshop dynamics encouraged the participants to engage actively and discuss their countries’ experiences:

The workshop demonstrated that there are major differences in the approaches used and capacity for managing fiscal risks among countries in the region. Some countries are well advanced, have in place dedicated fiscal risks units and are using good techniques to identify, quantify, and report on fiscal risks. Other countries still need to develop their institutions and analytical capacities. Several countries requested that FAD continues to provide capacity building through technical assistance, training, and further regional seminars.


[1] Laura Torrent is a Division Coordinator in the IMF’s Fiscal Affairs Department. Lesley Fisher is a Senior Economist at the IMF’s Fiscal Affairs Department. Alvaro Manoel is an economist, consultant, and member of FAD’s panel of experts. 

[2]The COVID-19 pandemic is impacting the public finances of countries through increased spending and reduced revenue collection, and through contingent liabilities turning into actual liabilities” (See IMF/FAD: “Managing Fiscal Risks Under Fiscal Stress”, in Special Series on Fiscal Policies to Respond to COVID-19 (

[3] Argentina, Brazil, Costa Rica, Dominican Republic, and Peru participated in the panel discussion.

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