Resolving a Large Contingent Fiscal Liability: Eastern Europe Experience

Author/Editor: Flanagan, Mark J
Publication Date: June 01, 2008
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: On occasion, a government may find itself confronted with a need to address a large contingent or off balance sheet fiscal liability. Implementing a settlement raises issues of fiscal sustainability and macroeconomic stability. This paper surveys the key design issues, and draws lessons from recent Eastern European experience. It then considers in more detail the particular case of Ukraine, and how it might approach its own large contingent liability-the so-called lost savings-which at end-2007 amounted to as much as 18 percent of GDP.
Series: Working Paper No. 08/159
Subject(s): Eastern Europe | Balance of payments deficits | Budget deficits | Fiscal sustainability | Debt management | Fiscal stability | Ukraine

Author's Keyword(s): Contingent liability | debt management | macroeconomic stabilization | Ukraine
Publication Date: June 01, 2008
Format: Paper
Stock No: WPIEA2008159 Pages: 40
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