Bulgaria: Fiscal Risks from State-Owned Enterprises
June 24, 2024
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State-owned enterprises’ (SOEs) economic and financial performance may have important fiscal implications. This study evaluates related fiscal risks in Bulgaria from both aggregate and firm-level perspectives. The low level of state-guaranteed debt of SOEs poses minimal fiscal risk. However, contingent liabilities could be a fiscal concern in the long term due to the low profitability of major SOEs and their inefficient resource allocation. Given their crucial role in the production network, their inefficiencies likely negatively impact the overall economy’s productivity and competitiveness. Additionally, liquidity and solvency risks are evident in several key SOEs. These findings underscore the need for monitoring and improving SOEs’ financial performance.
Subject: Arrears, Contingent liabilities, Debt service, Economic and financial statistics, Economic sectors, Energy sector, External debt, Financial sector policy and analysis, Financial statistics, Fiscal risks, Infrastructure, National accounts, Public enterprises, Public financial management (PFM), Solvency
Keywords: Arrears, Bulgaria, Contingent liabilities, Debt service, Energy sector, Financial statistics, Fiscal risks, Fiscal Risks, Infrastructure, Liquidity, Public enterprises, SOEs, SOEs’ financial performance, Solvency, State-Owned Enterprises, Transportation sector
Pages:
22
Volume:
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DOI:
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Issue:
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Series:
Selected Issues Paper No. 2024/022
Stock No:
SIPEA2024022
ISBN:
9798400280436
ISSN:
2958-7875
