{
  "title": "The Nexus Between Public Enterprise Governance, Financial Performance, and Macroeconomic Vulnerabilities: An Application to Moldova",
  "publication": "IMF Working Papers, March 4, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2022/03/04/the-nexus-between-public-enterprise-governance-financial-performance-and-macroeconomic-513885",
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  "summary": "Strong governance frameworks for public enterprises have long been an anchor of stability and efficiency underpinning their financial operations and performance.",
  "sections": [
    {
      "heading": "Summary and main conclusion",
      "content": "- Strong governance frameworks for public enterprises have long been an anchor of stability and efficiency underpinning their financial operations and performance.\n- Cross-country experiences with the adoption of robust legal, regulatory and institutional arrangements—in line with international best practices—proved critical in:\n  - reducing well-known risks and vulnerabilities from such companies,\n  - clarifying the role of the state,\n  - improving the management of state assets, and\n  - ensuring a level playing field for the private sector to prosper.\n- Moldova stands to greatly benefit from strengthening its public corporate governance regime to:\n  - put its public enterprises on a stronger footing,\n  - address vulnerabilities, and\n  - improve market structure."
    },
    {
      "heading": "Moldova’s public enterprise sector and vulnerabilities",
      "content": "- Moldova’s large public enterprise sector of over 900 companies faces elevated risks that:\n  - amplify fiscal and macroeconomic vulnerabilities,\n  - undermine market competition,\n  - undermine productivity, and\n  - undermine private investment."
    },
    {
      "heading": "Key thematic findings",
      "content": "- Relationship between governance and financial performance:\n  - Robust legal, regulatory and institutional arrangements are critical to improving financial operations and performance of public enterprises.\n- Macroeconomic and fiscal linkages:\n  - Weak public enterprise governance amplifies fiscal and macroeconomic vulnerabilities through contingent liabilities and distorted market conditions.\n- Market structure and private sector effects:\n  - Poorly governed public enterprises can erode a level playing field, reducing private sector competition and investment."
    },
    {
      "heading": "Policy implications and recommendations (high-level)",
      "content": "- Strengthen Moldova’s public corporate governance regime to:\n  - clarify the role of the state vis-à-vis public enterprises,\n  - improve management of state assets,\n  - reduce fiscal and macroeconomic vulnerabilities associated with public enterprises, and\n  - enhance market competition and conditions for private sector investment.\n- Align legal, regulatory, and institutional arrangements with international best practices to reduce risks and improve public enterprise financial performance.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/03/04/the-nexus-between-public-enterprise-governance-financial-performance-and-macroeconomic-513885"
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    "Authors: Amgad Hegazy, Arturo Navarro",
    "Published: March 4, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400202612.001",
    "Strong governance frameworks for public enterprises have long been an anchor of stability and efficiency underpinning their financial operations and performance.",
    "Cross-country experiences with the adoption of robust legal, regulatory and institutional arrangements—in line with international best practices—proved critical in:",
    "Moldova stands to greatly benefit from strengthening its public corporate governance regime to:",
    "Moldova’s large public enterprise sector of over 900 companies faces elevated risks that:",
    "Relationship between governance and financial performance:",
    "Macroeconomic and fiscal linkages:",
    "Market structure and private sector effects:",
    "Strengthen Moldova’s public corporate governance regime to:",
    "Align legal, regulatory, and institutional arrangements with international best practices to reduce risks and improve public enterprise financial performance.",
    "**Working Paper**"
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