Closing date: 18 Mar 2016
Location: Home Based
Closing date: 18 March 2016
Contract duration: 35 days
Fee: £500 per day
Background
The Countercyclical Loan Instrument
The Agence Française de Développement (AFD) has developed a unique countercyclical loan mechanism to assist low income countries (LICs) with the management of large and unexpected events, by allowing them the possibility of suspending their debt repayments during times of distress.
AFD offers LICs a number of grace periods - both fixed and variable - upon agreement of a loan contract, which is designed ex-ante to match as closely as possible the frequency of their export shocks. These grace periods can be activated through the materialisation of pre-established triggers (for example, an export to GDP ratio falling below 5%).
AFD does not, however, compensate LICs for losses due to export declines (such as in an insurance scheme). Instead, they simply aim to support the prevention of future debt crises. Read more >>
Objectives and purpose
The objective of this project is to produce a technical paper that outlines the supply side challenges of implementing a countercyclical loan mechanism and to offer recommendations for their mitigation. The project will also seek to highlight the advantages for creditor institutions in offering a countercyclical loan contract.
The findings will inform discussions, planned for later in the year, between the Commonwealth Secretariat, AFD, the Paris Club Creditors and other International Financial Institutions.
Expert profile
The consultant(s):
- must possess degrees in finance, economics, mathematics, or any other related discipline at Masters and/or Phd level.
- should be a financial, micro or macro economist with at least ten (10) years international experience and preferably with at least five (5) years of experience researching issues related to loan/debt instruments or the economics of financial markets;
- should ideally possess extensive experience working on policy in developing countries.
- should be fluent in French.
- Experience of working on issues related to countercyclical loans is desirable.
How to apply
Please apply for this position by submitting a CV and a short cover letter (2-3 pages) explaining your relevant experience and your approach for completing this work.
To be considered, you must be a citizen of a Commonwealth country.
We should receive your application by 17:00 on Friday 18 March 2016.
How to apply:
Please apply directly on our website via the following link:
http://thecommonwealth.org/jobs/consultant-examining-feasibility-countercyclical-lending