## Resolving a Large Contingent Fiscal Liability: Eastern European Experiences

_IMF Working Papers, June 1, 2008_

## Source details

**Canonical URL:** [Resolving a Large Contingent Fiscal Liability: Eastern European Experiences](https://www.imf.org/en/publications/wp/issues/2016/12/31/resolving-a-large-contingent-fiscal-liability-eastern-european-experiences-22062)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/resolving-a-large-contingent-fiscal-liability-eastern-european-experiences-22062/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/resolving-a-large-contingent-fiscal-liability-eastern-european-experiences-22062/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/resolving-a-large-contingent-fiscal-liability-eastern-european-experiences-22062/bundle-manifest.json)

## 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

---

## Content in this bundle

- **_wp08159**
  - [_wp08159 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp08159.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp08159 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp08159.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/resolving-a-large-contingent-fiscal-liability-eastern-european-experiences-22062_