Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries
IMF Working Papers, February 1, 2006
Source details
- Canonical URL
- Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries
Other formats
Bibliographic details
- Authors: Tapio Saavalainen, Joy Mylène ten Berge
- Published: February 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863031.001
Executive summary and context
- Quasi-fiscal deficits of public utility companies are common in all member countries of the Commonwealth of Independent States (CIS).
- These deficits constitute a significant impediment to efficient resource allocation and endanger macroeconomic stability.
- The paper presents a simple framework for measuring and monitoring quasi-fiscal deficits and highlights their macroeconomic relevance.
- It reviews 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.
Measurement and monitoring framework
- A simple framework is presented for measuring and monitoring quasi-fiscal deficits of public utility companies.
- The framework is designed to highlight the macroeconomic relevance of such deficits and to assist in monitoring their evolution.
Findings on IMF conditionality and outcomes (1993-2003)
- The review covers conditionality applied under IMF-supported programs over the period 1993-2003.
- The assessment finds that extensive conditionality produced only limited progress in reducing the energy sector's financial imbalances.
Macroeconomic relevance and risks
- Quasi-fiscal deficits impede efficient resource allocation.
- Quasi-fiscal deficits endanger macroeconomic stability.
Policy discussion and options
- The paper discusses different policy options in light of lessons learned from the 1993-2003 experience.
- Policy discussion focuses on addressing energy sector financial imbalances tied to quasi-fiscal activities of public utilities.
Subjects and keywords covered
- Subject areas: Banking, Commodities, Economic sectors, Electricity, Energy sector, External debt, Privatization, Tariffs, Taxes.
- Keywords include: aluminum smelter, Central Asia, CIS country, conditionality, country authorities, Electricity, Energy, energy enterprise, Energy sector, enterprise restructuring, Europe, General government cash deficit, governance, government decree, nonviable enterprise, Privatization, quasi-fiscal deficit, state capture, state debt, Tariffs, trading company, transition, WP.
Source: Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries, Tapio Saavalainen and Joy Mylène ten Berge, IMF Working Papers 2006, 043 (February 1, 2006).