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S&P Global Ratings keeps Serbia’s credit rating
Belgrade,
1 July 2016
The Ministry of Finance announced today that the credit rating agency Standard and Poor's maintained its credit rating of the Republic of Serbia at the level of BB- with a stable outlook to improve credit rating.
The statement says that the confirmation of the assessment of Serbia's credit rating by Standard and Poor's reflects the evaluation that the new Serbian government will continue with the implementation of the ambitious programme of fiscal consolidation and structural reforms.
In the report, the agency points out that in conditions of economic growth based primarily on boosting investment, the Serbian government continues to address structural issues in the economy and the public sector, which contributes to increasing the confidence of investors in the Republic of Serbia.
Standard and Poor's believes that the successful completion of the revisions of the arrangement with the International Monetary Fund (IMF) contributes to the preservation of investor confidence in the Republic of Serbia.
Although parliamentary and local elections have been held in the current year, significant public support for the implementation of fiscal reforms is highlighted and a clear fiscal plan of the Serbian government for 2016.
According to this rating agency, it is expected that the implementation of structural reforms will accelerate economic growth of the Republic of Serbia and will influence the reduction of its budget deficit.
Standard and Poor's especially singles out export growth as one of important facts, which has contributed to lower deficit of the current account to 4.8% of GDP in 2015, compared to 8.3% of GDP which was the average in the period from 2011 to 2014.
The current account deficit was more than covered by FDI (5.5% of GFP) in 2015, reads the statement by the Ministry of Finance.
In the report, the agency points out that in conditions of economic growth based primarily on boosting investment, the Serbian government continues to address structural issues in the economy and the public sector, which contributes to increasing the confidence of investors in the Republic of Serbia.
Standard and Poor's believes that the successful completion of the revisions of the arrangement with the International Monetary Fund (IMF) contributes to the preservation of investor confidence in the Republic of Serbia.
Although parliamentary and local elections have been held in the current year, significant public support for the implementation of fiscal reforms is highlighted and a clear fiscal plan of the Serbian government for 2016.
According to this rating agency, it is expected that the implementation of structural reforms will accelerate economic growth of the Republic of Serbia and will influence the reduction of its budget deficit.
Standard and Poor's especially singles out export growth as one of important facts, which has contributed to lower deficit of the current account to 4.8% of GDP in 2015, compared to 8.3% of GDP which was the average in the period from 2011 to 2014.
The current account deficit was more than covered by FDI (5.5% of GFP) in 2015, reads the statement by the Ministry of Finance.
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