Fiscal risk assessment of contingent liabilities associated with natural disasters: The Colombian experience

This report focuses on the fiscal assessment of natural disasters - a major source of contingent liabilities in Colombia. It highlights technical and normative efforts and policy reforms on the management of contingent liabilities implemented by the Colombian Government. Importantly, although natural disasters are the second most important source of contingent liabilities faced by the Colombian Government, most formal policy reforms have been directed to the institutionalization of managing the first three sources of contingencies, while legal reforms for the explicit accounting of natural disasters is an ongoing effort in Colombia.

The note builds on the report “Contingent Liabilities: The Colombian Experience,” published by the Colombian Ministry of Finance and Public Credit (MHCP). It is the first publication on the management of contingent liabilities in Colombia.