Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries
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Summary:
Quasi-fiscal deficits of public utility companies are common in all member countries of the Commonwealth of Independent States (CIS). They constitute a significant impediment to efficient resource allocation and endanger macroeconomic stability. This paper presents a simple framework for measuring and monitoring such deficits and highlights their macroeconomic relevance. It reviews the progress under IMF conditionality aimed at correcting these imbalances during 1993-2003. The paper suggests that the extensive conditionality under the IMF-supported programs has yielded only limited progress in reducing the energy sector's financial imbalances. In conclusion, different policy options are discussed in light of the lessons learned.
Series:
Working Paper No. 2006/043
Subject:
Banking Commodities Economic sectors Electricity Energy sector External debt Privatization Tariffs Taxes
English
Publication Date:
February 1, 2006
ISBN/ISSN:
9781451863031/1018-5941
Stock No:
WPIEA2006043
Pages:
37
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