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Resolving a Large Contingent Fiscal Liability; Eastern European Experiences


  • Mark J Flanagan


On occasion, a government may find itself confronted with a need to address a large contingent or off balance sheet fiscal liability. Implementing a settlement raises issues of fiscal sustainability and macroeconomic stability. This paper surveys the key design issues, and draws lessons from recent Eastern European experience. It then considers in more detail the particular case of Ukraine, and how it might approach its own large contingent liability-the so-called lost savings-which at end-2007 amounted to as much as 18 percent of GDP.

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  • Mark J Flanagan, 2008. "Resolving a Large Contingent Fiscal Liability; Eastern European Experiences," IMF Working Papers 08/159, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:08/159

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    References listed on IDEAS

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    More about this item


    Eastern Europe; Debt management; Balance of payments deficits; Budget deficits; Fiscal sustainability; Fiscal stability; Ukraine; Contingent liability; macroeconomic stabilization; debt service; current account; fiscal policy; debt settlement;

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