Managing Fiscal Risks from State-Owned Enterprises

Author/Editor:

Anja Baum ; Paulo Medas ; Alberto Soler ; Mouhamadou Sy

Publication Date:

September 25, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Link to data for this title

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Ensuring that state-owned enterprises (SOEs) are efficient and managed prudently is important for economic and social reasons. It is also crucial to contain fiscal risks and reduce the burden on taxpayers from recurrent and large bailouts. Governments need to develop stronger capacity to monitor and mitigate the risks from SOEs. We present a risk tool to benchmark the performance of SOEs relative to their peers and assess their vulnerabilities, including through stress tests. A strategy to mitigate risks requires the right incentives for managers to perform and for government agencies to conduct effective oversight. Incorporating SOEs in overall fiscal targets would promote greater fiscal discipline and transparency.

Series:

Working Paper No. 20/213

Frequency:

regular

English

Publication Date:

September 25, 2020

ISBN/ISSN:

9781513557502/1018-5941

Stock No:

WPIEA2020213

Format:

Paper

Pages:

43

Please address any questions about this title to publications@imf.org