## Disclosing Fiscal Risks in the Post-Crisis World

_IMF Staff Position Notes, July 16, 2009_

## Source details

**Canonical URL:** [Disclosing Fiscal Risks in the Post-Crisis World](https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/disclosing-fiscal-risks-in-the-post-crisis-world-23103)

## Other formats

- [Markdown version](/en/publications/imf-staff-position-notes/issues/2016/12/31/disclosing-fiscal-risks-in-the-post-crisis-world-23103/index.md)
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## Bibliographic details
- Published: July 16, 2009
- Series: IMF Staff Position Notes
- DOI: https://doi.org/10.5089/9781455241125.004

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### Summary
- Discusses appropriate methods for disclosing fiscal risks from exogenous shocks and the realization of explicit or implicit contingent obligations of the government.
- Expands on previous guidance prepared prior to the crisis, with a focus on fiscal risks emerging from recent public interventions in the financial sector.
- Argues that information on fiscal risks and its public reporting leads to a better understanding of the true state of the public finances, helping policymakers design and get public support for appropriate responses to contingencies.

### Fiscal risks from public interventions in the financial sector
- The unfolding global financial crisis prompted a wide range of public sector interventions in support of the financial system.
- Although these interventions were necessary, they have generated further fiscal risks.
- Such interventions create assets and liabilities that governments have taken onto their balance sheets, with implications for future fiscal outturns.

### Role of comprehensive reporting
- Comprehensive reporting of fiscal risks would help governments:
  - Define a management strategy for the assets and liabilities taken on their balance sheet.
  - Prepare exit strategies for reducing their presence in the financial sector and eventually withdrawing support.
- Public disclosure improves understanding of the true fiscal position and helps secure public support for policy responses when contingencies realize.

### Policy implications and recommendations (implicit in the note)
- Enhance the disclosure of contingent liabilities and fiscal risks stemming from financial-sector support measures.
- Use forward-looking reporting and fair value assessment approaches to better capture potential fiscal exposures.
- Develop clear asset- and liability-management strategies tied to publicly disclosed exit plans from extraordinary financial-sector interventions.

### Subject areas and keywords (as categorized in the publication)
- Subject: Contingent liabilities, Economic sectors, Financial statements, Fiscal policy, Fiscal risks, Public debt, Public financial management (PFM), Public sector
- Keywords: asset price volatility, asset recovery, commercial paper, Contingent liabilities, debt, debt repayment, debt stock, fair value, financial crisis, Financial statements, fiscal risk, Fiscal risks, forward-looking risk estimate, Global, public finance, Public sector, purchased assets, recovery rate, risk, risk ratings approach, SPN

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## Content in this bundle

- **_spn0918 - Executive Summary**
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_Source: https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/disclosing-fiscal-risks-in-the-post-crisis-world-23103_