A recently published World Bank paper analyzed the apparent cost advantage of public borrowing and concluded that "under government finance, the taxpayers bear a contingent liability which, if properly remunerated would wipe out any cost advantage of sovereign borrowing" (Klein 1996). In other words, the true cost of government financing is not reflected in the interest rate and budget authorization estimates and often will not show up at all in economic analyses of the project. However, just as an insurance company experiences claims on risks it covers, the government will experience the cost of absorbing this contingent liability.