This, in turn, was expected to facilitate the fixing of ceiling on guarantees in a non-mechanistic fashion to better  4  BIS Review 105/2007  capture the risk inherent in guarantees, and to enable adoption of better provisioning techniques to cover these contingent liabilities.
In this backdrop, it was decided to constitute a Group of State Finance Secretaries on the Fiscal Risk on State Government Guarantees to examine the fiscal risk of guarantees extended by the State Governments. The report of the Group was discussed at the tenth Conference of the State Finance Secretaries, held in June 2002.