Selected Issues Papers

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Format: Chicago

Natalie Manuilova, Anh D. M. Nguyen, and Erkeaim Shambetova. "Kyrgyz Republic: Fiscal Risks from State-owned Enterprises", Selected Issues Papers 2025, 083 (2025), accessed July 20, 2025, https://doi.org/10.5089/9798229014045.018

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Summary

State-owned enterprises (SOEs) in the Kyrgyz Republic play a significant role in the economy but also present potential fiscal risks. This paper assesses these risks through both aggregate and firm-level lenses. At the aggregate level, the total amount of liabilities of largest SOEs liabilities amounted to approximately 25 percent of GDP, raising concerns about contingent fiscal liabilities. The firm-level assessment based on key financial indicators - profitability, solvency, and liquidity- confirms vulnerabilities, particularly among large SOEs in the energy sector, where low profitability largely reflects tariffs set below cost-recovery levels. These findings underscore the importance of strengthening SOE oversight, financial transparency, and advancing reforms to mitigate fiscal risks.

Subject: Contingent liabilities, Economic sectors, Energy sector, Financial sector policy and analysis, Fiscal risks, Public enterprises, Public financial management (PFM), Solvency

Keywords: Central Asia, Contingent liabilities, Energy sector, Fiscal Risks, Global, IMF SOE health check tool, Kyrgyz Republic, Kyrgyzstan soes health check, Middle East, North Africa, Public enterprises, Risk threshold, SOE oversight, SOEs, Soes liability, SOEs’ financial performance, Solvency, State-Owned Enterprises

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