Contingent Liabilities; Issues and Practice

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.

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Year of publication:	2008-10-01
Authors:	Cebotari, Aliona
Institutions:	International Monetary Fund (IMF)
Subject:	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

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 08/245 6 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005599325