Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries

Author/Editor:

Joy Mylène ten Berge ; Tapio Saavalainen

Publication Date:

February 1, 2006

Electronic Access:

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Summary:

Quasi-fiscal deficits of public utility companies are common in all member countries of the Commonwealth of Independent States (CIS). They constitute a significant impediment to efficient resource allocation and endanger macroeconomic stability. This paper presents a simple framework for measuring and monitoring such deficits and highlights their macroeconomic relevance. It reviews the progress under IMF conditionality aimed at correcting these imbalances during 1993-2003. The paper suggests that the extensive conditionality under the IMF-supported programs has yielded only limited progress in reducing the energy sector's financial imbalances. In conclusion, different policy options are discussed in light of the lessons learned.

Series:

Working Paper No. 06/43

Subject:

English

Publication Date:

February 1, 2006

ISBN/ISSN:

9781451863031/1018-5941

Stock No:

WPIEA2006043

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

37

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