Selected Issues Papers

Kyrgyz Republic: Fiscal Risks from State-owned Enterprises

By Natalie Manuilova, Anh D. M. Nguyen, Erkeaim Shambetova

June 18, 2025

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Format: Chicago

Natalie Manuilova, Anh D. M. Nguyen, and Erkeaim Shambetova. "Kyrgyz Republic: Fiscal Risks from State-owned Enterprises", Selected Issues Papers 2025, 083 (2025), accessed June 19, 2025, https://doi.org/10.5089/9798229014045.018

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Summary

State-owned enterprises (SOEs) in the Kyrgyz Republic play a significant role in the economy but also present potential fiscal risks. This paper assesses these risks through both aggregate and firm-level lenses. At the aggregate level, the total amount of liabilities of largest SOEs liabilities amounted to approximately 25 percent of GDP, raising concerns about contingent fiscal liabilities. The firm-level assessment based on key financial indicators - profitability, solvency, and liquidity- confirms vulnerabilities, particularly among large SOEs in the energy sector, where low profitability largely reflects tariffs set below cost-recovery levels. These findings underscore the importance of strengthening SOE oversight, financial transparency, and advancing reforms to mitigate fiscal risks.

Subject: Asset and liability management, Contingent liabilities, Debt financing, Economic and financial statistics, Economic sectors, Energy sector, External debt, Financial sector policy and analysis, Financial statistics, Fiscal risks, Liquidity, Liquidity management, Public enterprises, Public financial management (PFM), Solvency

Keywords: Contingent liabilities, Debt financing, Energy sector, Financial statistics, Fiscal risks, Fiscal Risks, Kyrgyz Republic, Liquidity, Liquidity management, Public enterprises, SOEs, SOEs’ financial performance, Solvency, State-Owned Enterprises

Publication Details

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