Advanced Search
MyIDEAS: Login

Contingent Liabilities

Contents:

Author Info

  • Aliona Cebotari
Registered author(s):

    Abstract

    Contingent liabilities have gained prominence in the analysis of public finance. Indeed, history is full of episodes in which the financial position of the public sector is substantially altered-or its true nature uncovered-as a result of government bailouts of financial or nonfinancial entities, in both the private and the public sector. The paper discusses theoretical and practical issues raised by contingent liabilities, including the rationale for taking them on, how to safeguard against the fiscal risks associated with them, how to account and budget for them, and how to disclose them. Country experiences are used to illustrate ways these issues are addressed in practice and challenges faced. The paper also points to good practices related to the mitigation, management and disclosure of risks from contingent liabilities.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=22398
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/245.

    as in new window
    Length: 60
    Date of creation: 01 Oct 2008
    Date of revision:
    Handle: RePEc:imf:imfwpa:08/245

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Risk management; Debt problems; Public finance; Government expenditures; Fiscal transparency; contingent liabilities; contingent liability; accounting standards; moral hazard; beneficiaries; risk premium; government guarantees; deposit insurance; financial management; credit risk; budget documents; government finance; government guarantee; budget process; risk insurance; state guarantees; social security; international accounting standards; audit institutions; underwriting; financial reporting; cash accounting; government finance statistics; credit ratings; public financial management; flood insurance; budget year; budget documentation; budget practices; export credit insurance; national accounts; medium-term fiscal framework; budget office; government liabilities; insurance industry; internal audit; government interventions; accrual budgeting; risk transfer; budget transparency; imperfect information; risk sharing; accrual accounting; budget system; credit insurance; risk mitigation; public financial management systems; budget review; medium-term budget framework; budgetary support; applications; mitigation measures; pension funds; insurance coverage; insurance markets; budget paper; banking crises; treasury single account; emerging markets; risk allocation; public finance act; financial management systems; medium-term budget; annual financial statements; budgetary process; budget act; private pension funds; budget framework; national treasury; financial accounting; risk assessments; risk profile; legal framework; risk of loss; insurance companies; government financing; insurance systems; budget surpluses; catastrophic risks; budgetary reserves; public financial management system; internal control; insurance claims; budget revenues; unemployment insurance; budget reallocations; risk of default; public finance management system; catastrophes; government obligations; cash budgeting; budget system law; budgetary institutions; government accounting; private insurance; disaster insurance; financial management system; budgetary framework; risk taking; public finance management; crop insurance; financial accounting standards; government insurance; reinsurance; risk assessment; budget expenditures; government policies; budget systems; cash budgeting system; insurance contracts; budget transfers; government finances; credit risks; capital investments; deposit insurance systems; self ? insurance;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Jón R. Blöndal, 2004. "Issues in Accrual Budgeting," OECD Journal on Budgeting, OECD Publishing, vol. 4(1), pages 103-119.
    2. Honohan, Patrick, 2010. "Partial credit guarantees: Principles and practice," Journal of Financial Stability, Elsevier, vol. 6(1), pages 1-9, April.
    3. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug..
    4. Hana Polackova Brixi & Allen Schick, 2002. "Government at Risk : Contingent Liabilities and Fiscal Risk," World Bank Publications, The World Bank, number 15233, October.
    5. Ashok Vir Bhatia, 2002. "Sovereign Credit Ratings Methodology," IMF Working Papers 02/170, International Monetary Fund.
    6. Demirgüç-Kunt, A. & Beck, T.H.L. & Honohan, P., 2008. "Finance for all?: Policies and pitfalls in expanding access," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3508393, Tilburg University.
    7. Edwin J. Elton, 2001. "Explaining the Rate Spread on Corporate Bonds," Journal of Finance, American Finance Association, vol. 56(1), pages 247-277, 02.
    8. Fabian Valencia & Luc Laeven, 2008. "Systemic Banking Crises," IMF Working Papers 08/224, International Monetary Fund.
    9. José Miguel Benavente & Alexander Galetovic & Ricardo Sanhueza, 2006. "Fogape: an economic analysis," Working Papers wp222, University of Chile, Department of Economics.
    10. Honohan, Patrick & Klingebiel, Daniela, 2003. "The fiscal cost implications of an accommodating approach to banking crises," Journal of Banking & Finance, Elsevier, vol. 27(8), pages 1539-1560, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:08/245. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.