Making a difference

Loan Evaluation & Negotiation

The tightening of credit markets has reduced the borrowing options available to governments. The credit available has also become more costly and this has heightened the need for governments to be able to critically evaluate different loan options and negotiate more favourable terms.

This course will build the analytical skills of participants to enable them to evaluate different financing options and empower them to select and negotiate the most appropriate terms. It will take as a starting point the need to understand financial markets and different creditors and emphasises the need to balance cost with risk.

Who should attend
Anyone who is involved in evaluating the financing needs of government, interacting with official and commercial creditors and managing public debt.

How you will benefit
By the end of the course you will be able to:

• apply basic principles in market dynamics and how these affect the terms of different loans
• apply financial evaluation techniques and make recommendations based on them
• examine loan contracts and understand their structure and different clauses
• evaluate the impact of different financing options on the government's debt portfolio, in line with a borrowing strategy
• enter into negotiations with improved skills to achieve efficient use of resources

Course profile

• The legal and institutional framework for government borrowing
• Different financing options available to governments
• Debt strategy - guiding borrowing decisions
• Techniques for comparing different loan options including calculating the present value, effective rate of interest and grant element
• The structure of typical loan agreements
• Interpretation of different loan clauses and their implications
• Principles of negotiation and the process of negotiation
• Negotiation skills and behaviours
• Loan negotiation strategies