Philippine Standard time

Contingent Liabilities: Adding Up to the Fiscal Burden


Who will carry the burden of the negative shocks to investments of private investors in infrastructure projects due to possible fluctuations in the economy in the future? Basically, the government, in view of the guarantees it signified in certain project arrangements with the private sector. And while the new infrastructure policy environment has led to a surge in private investor interest and investments in various infrastructure projects, there is a possible downside to it: contingent liabilities. In this issue's lead feature, the author cautions the government against the serious negative impacts of contingent liabilities as sources of additional financial obligations that could further saddle the country with substantial fiscal burdens.

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Jul 06, 2013