IMF Working Papers

The Nexus Between Public Enterprise Governance, Financial Performance, and Macroeconomic Vulnerabilities: An Application to Moldova

By Amgad Hegazy, Arturo Navarro

March 4, 2022

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Amgad Hegazy, and Arturo Navarro. The Nexus Between Public Enterprise Governance, Financial Performance, and Macroeconomic Vulnerabilities: An Application to Moldova, (USA: International Monetary Fund, 2022) accessed September 20, 2024

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

Strong governance frameworks for public enterprises have long been an anchor of stability and efficiency underpinning their financial operations and performance. Cross-country experiences with the adoption of robust legal, regulatory and institutional arrangements—in line with international best practices— proved critical in reducing well-known risks and vulnerabilities from such companies, clarifying the role of the state, improving the management of state assets, and ensuring a level playing field for the private sector to prosper. Moldova’s large public enterprise sector of over 900 companies faces elevated risks that amplify fiscal and macroeconomic vulnerabilities and undermine market competition, productivity, and private investment. Moldova stands to greatly benefit from strengthening its public corporate governance regime to put its public enterprises on a stronger footing, address vulnerabilities, and improve market structure.

Subject: Asset and liability management, Economic sectors, Financial sector policy and analysis, Fiscal risks, Liquidity, Public enterprises, Public financial management (PFM), Public sector, Solvency

Keywords: Cross country experiences in public enterprise, Eastern Europe, Fiscal risks, Governance framework, Liquidity, Macro-fiscal risks from SOEs, Moldova's public enterprises, Nexus Between public enterprise governance, Public enterprise (SOE) governance, Public enterprise sector, Public enterprises, Public financial management, Public sector, SOE financial performance, SOE reforms, Solvency

Publication Details

  • Pages:

    40

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/050

  • Stock No:

    WPIEA2022050

  • ISBN:

    9798400202612

  • ISSN:

    1018-5941

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