Resolving a Large Contingent Fiscal Liability: Eastern European Experiences
IMF Working Papers, June 1, 2008
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- Resolving a Large Contingent Fiscal Liability: Eastern European Experiences
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Bibliographic details
- Authors: Mark J Flanagan
- Published: June 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870176.001
Summary
- Governments may need to address large contingent or off balance sheet fiscal liabilities; implementing a settlement raises issues of fiscal sustainability and macroeconomic stability.
- The paper surveys key design issues and draws lessons from recent Eastern European experience.
- The paper considers in more detail the particular case of Ukraine and how it might approach its large contingent liability—the so-called lost savings—which at end-2007 amounted to as much as 18 percent of GDP.
Key design issues and lessons from Eastern Europe
- Settlement design must balance fiscal sustainability and macroeconomic stability.
- Lessons are drawn from recent Eastern European experience (survey and synthesis of outcomes and design choices).
Case study: Ukraine (lost savings)
- At end-2007 the lost savings liability amounted to as much as 18 percent of GDP.
- The paper examines approaches Ukraine might consider to address its large contingent liability, within the broader context of fiscal and macroeconomic implications.
Subject areas and keywords
- Subject: Arrears, Currencies, Fiscal sustainability, Privatization, Real interest rates
- Keywords: current account, financial market, monetary policy, real interest rate, WP