This paper analyzes the main sources of fiscal risks, including
from unexpected changes in macroeconomic variables and banking
crises, which can have major consequences for countries' fiscal and
public debt sustainability. It builds on an overview of existing
practices in a wide range of countries to provide practical
suggestions on how to promote disclosure of such risks and on risk
mitigation and management. The paper was written in response to
requests from IMF member countries for advice on this subject. The
paper also includes an example of a possible statement of fiscal
risks.
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