Cover IMF How To Notes
Buy Book in Print
How to Assess Fiscal Risks from State-Owned Enterprises: Benchmarking and Stress Testing
Author:
Ms. Anja Baum null

Search for other papers by Ms. Anja Baum in
Current site
Google Scholar Close
,
Mr. Paulo A Medas
Search for other papers by Mr. Paulo A Medas in
Current site
Google Scholar Close
,
Alberto Soler null

Search for other papers by Alberto Soler in
Current site
Google Scholar Close
, and
Mouhamadou Sy null

Search for other papers by Mouhamadou Sy in
Current site
Google Scholar Close
Series:
IMF How To Notes
Volume/Issue:
Volume 2021: Issue 009
Language:
English
Publication Date:
19 Aug 2021
DOI:
https://doi.org/10.5089/9781513591186.061
ISBN:
9781513591698
ISSN:
2522-7912
Pages:
27
Keywords:
Fiscal Affairs Department staff; stress scenario; operating cash flow; current liabilities; performance indictor; SOE financials; Public enterprises; Fiscal risks; Currencies; Financial statements; Stress testing; Global
Legal-disclaimer:
Fiscal Affairs Department (FAD) How to Notes offer practical advice from IMF staff members to policymakers on important fiscal issues. The views expressed in FAD How to Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (4.7 MB) Download Epub
The size and operation of state-owned enterprises (SOEs) can imply significant risks for governments. SOEs are present in virtually every country in the world and are major players in domestic economies and in global markets. In some countries, they number in the thousands and are owned by national or subnational governments. SOEs are among the largest corporations in some advanced economies and comprise a third or more of the largest firms in several emerging markets. Many operate with systematic losses and carry significant liabilities. If SOEs face adverse shocks and financial distress they can impact the government budget or balance sheet through numerous transmission channels. This How to Note describes a newly developed SOE risk assessment tool to help country authorities and IMF country teams. The analysis can provide inputs for annual budgets and medium-term fiscal planning. This includes providing estimates of possible transfers to and from SOEs to the budget and possible financing needs. The note outlines the main steps and elements of the template to assess fiscal risks for governments from individual SOEs. The first step is to collect financial information on SOEs and their relation to the government budget, and to provide a benchmark against other SOEs in similar sectors. A second step is to do a forward-looking analysis based on baseline forecasts and stress scenarios, to identify and analyze possible risks and their impact on government accounts.
  • Collapse
  • Expand
Cover IMF How To Notes
IMF How To Notes
ISSN:
2522-7912
Publisher:
International Monetary Fund