Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries

37 Pages Posted: 23 Mar 2006

See all articles by Tapio Saavalainen

Tapio Saavalainen

International Monetary Fund (IMF)

Joy ten Berge

affiliation not provided to SSRN

Date Written: February 2006


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.

Keywords: Energy, quasi-fiscal deficit, transition, conditionality, governance

JEL Classification: L71, E62, P21, F33, H11

Suggested Citation

Saavalainen, Tapio and ten Berge, Joy, Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries (February 2006). IMF Working Paper No. 06/43, Available at SSRN: https://ssrn.com/abstract=892934

Tapio Saavalainen (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Joy Ten Berge

affiliation not provided to SSRN

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