Resolving a Large Contingent Fiscal Liability: Eastern European Experiences
June 1, 2008
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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.
Subject: Arrears, Currencies, Fiscal sustainability, Privatization, Real interest rates
Keywords: current account, financial market, monetary policy, real interest rate, WP
Pages:
40
Volume:
2008
DOI:
Issue:
159
Series:
Working Paper No. 2008/159
Stock No:
WPIEA2008159
ISBN:
9781451870176
ISSN:
1018-5941
