Resolving a Large Contingent Fiscal Liability: Eastern European Experiences

Author/Editor:

Mark J Flanagan

Publication Date:

June 1, 2008

Electronic Access:

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Link to data for this title

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. 2008/159

Subject:

Arrears Currencies Fiscal sustainability Privatization Real interest rates

Frequency:

Annually

English

Publication Date:

June 1, 2008

ISBN/ISSN:

9781451870176/1018-5941

Stock No:

WPIEA2008159

Pages:

40

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