Kyrgyz Republic: Fiscal Risks from State-owned Enterprises
Selected Issues Papers, June 18, 2025
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- Kyrgyz Republic: Fiscal Risks from State-owned Enterprises
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Bibliographic details
- Authors: Natalie Manuilova, Anh D. M. Nguyen, Erkeaim Shambetova
- Published: June 18, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229014045.018
Overview
- State-owned enterprises (SOEs) in the Kyrgyz Republic play a significant role in the economy but present potential fiscal risks.
- The paper assesses these risks through both aggregate and firm-level lenses, using financial indicators to identify vulnerabilities.
Aggregate assessment
- The total amount of liabilities of largest SOEs liabilities amounted to approximately 25 percent of GDP, raising concerns about contingent fiscal liabilities.
Firm-level assessment
- Assessment based on key financial indicators:
- Profitability
- Solvency
- Liquidity
- Findings:
- Vulnerabilities are confirmed at the firm level, particularly among large SOEs in the energy sector.
- Low profitability in the energy sector largely reflects tariffs set below cost-recovery levels.
Policy recommendations and implications
- Strengthen SOE oversight.
- Improve financial transparency of SOEs.
- Advance reforms to mitigate fiscal risks, with particular focus on the energy sector where tariff-setting undermines cost recovery and profitability.
Key statistics and metadata
- Publication date: June 18, 2025
- Pages: 19
- Series: Selected Issues Paper No. 2025/083
- DOI: https://doi.org/10.5089/9798229014045.018
Source: Kyrgyz Republic: Fiscal Risks from State-owned Enterprises
Content in this bundle
- Sipea2025083